NTPC Green receives SEBI approval for Rs 100 billion IPO

NTPC Green Energy, a subsidiary of NTPC Ltd, has received final approval from the Securities and Exchange Board of India (SEBI) to proceed with its Rs 100 billion initial public offering (IPO). 

As India’s largest public sector renewable energy enterprise (excluding hydro) by capacity and power generation in FY 2024, NTPC Green Energy initially filed its IPO documents with SEBI on September 18, 2024.

As of June 30, 2024, NTPC Green Energy managed 37 solar and 9 wind projects for 15 off-takers and is constructing 31 renewable energy projects across 7 states, with a total of 11.77 GW contracted and awarded. Additionally, it operates 2.93 GW through 14 solar and 2 wind projects. The IPO comprises entirely new equity shares, with a portion reserved for qualified employees, who will receive a discount under the employee reservation section.

The proceeds from the offering, totalling Rs 75 billion, will support investments in NTPC Renewable Energy Limited (NREL), repaying or prepaying debts associated with NREL, and general corporate purposes. Lead managers for the offering include IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited, with KFin Technologies Limited serving as the registrar.

NTPC Green Energy recorded revenue growth from Rs 9.1 billion in FY 2022 to Rs 19.63 billion in FY 2024 (a 46.82% growth rate) and profit after tax growth at a CAGR of 90.75% to Rs 3.45 billion over the same period. For the quarter ending June 30, 2024, revenue reached Rs 5.78 billion, with a profit after tax of Rs 1.39 billion.