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NTPC Green initially submitted its draft papers to SEBI on September 18, 2024, and plans to raise Rs 10,000 crore through the issue; Details
The NTPC Green Energy IPO is entirely a fresh issuance of equity shares with no offer-for-sale component. (File Photo: Reuters)
NTPC Ltd shares spiked 1.89 per cent in morning trade on Tuesday after NTPC Green Energy, the renewable energy subsidiary, got green light from the Securities and Exchange Board of India (SEBI) to proceed with its highly anticipated initial public offering (IPO). The company initially submitted its draft papers to SEBI on September 18, 2024, and plans to raise Rs 10,000 crore through the issue.
The IPO with a face value of ₹10 per equity share is entirely a fresh issue of equity shares.
The offer also includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.
The proceeds from the fresh issue to the extent of ₹7,500 crore will be used for investment in its wholly owned subsidiary, NTPC Renewable Energy (NREL), for repayment/ prepayment, in full or in part of certain outstanding borrowings availed by NREL and general corporate purposes.
Promoted by NTPC, NGEL is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of June 30, 2024 and power generation in Fiscal 2024, according to a CRISIL Report mentioned in the DRHP.
As of June 30, 2024, NTPC Green’s portfolio consisted of 14,696 megawatts (MW) including 2,925 MW of operating projects and 11,771 MW of contracted and awarded projects.
Additionally, it has 10,975 MW of capacity under pipeline, aggregating to 25,671 MW together with its portfolio.
The company’s renewable energy portfolio encompasses both solar and wind power assets with presence across multiple locations in more than six states which helps mitigate the risk of location-specific generation variability, according to a CRISIL Report mentioned in the DRHP.
As of June 30, 2024, NTPC Green had 15 offtakers across 37 solar projects and 9 wind projects and are in the process of constructing 31 renewable energy projects in 7 states consisting of 11,771 MW contracted and awarded. It also had 2,925 MW operating across 14 solar projects and 2 wind projects.
Its operational capacity was 3,071 MW of solar projects and 100 MW of wind projects across six states as of August 31, 2024, strategically focused on developing a portfolio of utility-scale renewable energy projects, as well as projects for public sector undertakings (PSUs) and Indian corporates.
NGEL’s revenue from operations has grown at a CAGR of 46.82 per cent from ₹910.42 crore in FY22 (on a special purpose carved-out basis) to ₹1,962.60 crore in FY24 (on a restated basis). Profit after tax grew at a CAGR of 90.75 per cent from ₹94.74 crore in FY22 (on a special purpose carved-out basis) to ₹344.72 crore in FY24 (on a restated basis).
For the three months period ended June 30, 2024 revenue from operations and profit after tax stood at ₹578.44 crore and ₹138.61 crore, respectively, on a restated basis.
Largest Renewable Energy Public Sector Enterprise
According to a CRISIL report cited in the Draft Red Herring Prospectus (DRHP), NTPC Green Energy is currently India’s largest public sector renewable energy company (excluding hydro) based on operating capacity as of June 30, 2024, and power generation in Fiscal 2024.
NTPC Ltd. fully owns NTPC Green Energy, cementing its presence in India’s transition to renewable energy sources.
IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the book-running lead managers to the issue and KFin Technologies is the registrar to the offer.
