IPO-bound NTPC Green Energy targets investments worth ₹1 lakh crore in wind, solar assets by FY27

IPO-bound NTPC Green Energy aims to invest up to ₹1 lakh crore in solar and wind assets by FY27, a top official told news agency PTI on Wednesday, November 13. Assuming 20 per cent of the investment to come from equity, it will need ₹20,000 crore of its own funds for the expansion, chairman and managing director Gurdeep Singh said, adding that funds worth ₹10,000 crore will be coming through the upcoming initial public offering (IPO).

The leading renewable energy major will raise the remaining resources through internal accruals. Regarding debt, NTPC Green Energy has a very good credit rating from multiple agencies courtesy of the strong parentage in India's biggest power producer, NTPC, Singh said, stressing that this enables it to land debt at softer rates compared to rivals.

Also Read: NTPC Green Energy IPO: Price band set at ₹102-108 per share; check issue details, key dates, more

NTPC Green Energy, promoted by NTPC Ltd, is recognized as the largest public sector company in renewable energy (excluding hydro) regarding operational capacity and power generation for Fiscal 2024.

NTPC Green Energy, which has an installed capacity of 3,220 MW right now, is aiming to take up the same number to 6,000 MW by March 2025, 11,000 MW by March 2026, and 19,000 by March 2027, the chairman said, adding that 11,000 MW of projects are already under implementation at multiple levels. 

According to the top official, it will operate at a level where 90 per cent of the capacity will be solar, which requires an investment of ₹5 crore per MW, and the rest will be wind, which needs ₹8 crore per MW. "The capital expenditure requirement by FY27 will be approximately ₹1 lakh crore," he said.

Also Read: NTPC Green Energy IPO targets $12 billion valuation in one of India’s biggest renewable listings

NTPC Green Energy IPO Details

NTPC Green Energy IPO will be open from November 19-22. The NTPC Group company plans a fresh issue of shares worth ₹10,000 crore at a price band of ₹102-108 apiece. Investors will have to apply for a minimum of 138 shares and multiples of 138 thereafter in the IPO, which is one of the biggest offerings by any company in recent times.

The public issue came right after the food delivery company Swiggy's ₹7,000-crore share sale. Parent NTPC has invested ₹7,5f00 crore in NTPC Green Energy since its inception and seeks a ₹1 lakh crore valuation for it.

The chairman said that given the company's focus on sustainability, it has many opportunities and is faring better than rivals, including Renew and Adani Green Energy. He also said that NTPC Green Energy does not want to restrict itself to power generation alone and added that it has drawn up plans for green hydrogen, pump storage power, and energy storage.

Also Read: Upcoming IPO: NTPC Green Energy gets SEBI nod for ₹10,000 crore IPO

Singh said the green hydrogen complex will be located on a 1,200-acre land parcel near Vishakhapatnam, which parent NTPC picked up many years ago to set up an imported coal-based power plant. On the PSP front, it is in talks with several states, including Tamil Nadu, Andhra Pradesh, Chhattisgarh and Odisha, which have the potential, Singh said, adding that it will also be fine picking up stressed projects even though its preference is for a new project.

With inputs from PTI