NTPC Green Energy plans ₹10,000 crore IPO launch in November 2024: Report

NTPC Green Energy, the renewable energy subsidiary of the state-owned National Thermal Power Corporation (NTPC), is expected to launch its ₹10,000 crore initial public offering (IPO) in the first week of November 2024, CNBC-TV18 reported on Monday, September 23, citing people aware of the development.

LiveMint couldn't independently verify the news development.

The company plans to hold roadshows in multiple locations across India and abroad, including Mumbai, London, the United States, Singapore, etc. to attract investments, the report said.

The renewable energy company filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on September 18, looking to raise nearly ₹10,000 crore from the public issue, according to the company's filing.

NTPC management aims to unlock significant value by listing the subsidiary NTPC Green Energy, the news portal reported, citing people in the know.

The company's Chief Executive Officer (CEO), Mohit Bhargava, told the news portal about the significant need for equity in the business, one of the primary reasons for the company filing for an IPO.

“We will have to raise equity either through internal accruals or from the markets. So we feel that we will have to go to the market at some point of time,” he said.

About NTPC Green Energy IPO:

As Mint reported, NTPC Green Energy's initial public offering (IPO) is an entirely fresh issue of equity shares with no offer for sale (OFS) component.

The company aims to raise nearly ₹10,000 crore. It has plans to use the money raised to repay a portion of the outstanding loans of its subsidiary, NTPC Renewable Energy Ltd (NREL), with the remainder allocated for general corporate purposes, as per the company's regulatory filing.

NTPC Green Energy, a 'Maharatna' public sector enterprise, has a renewable energy portfolio that includes solar and wind power assets spread across more than six states.

The company aims to achieve 60 GW of renewable energy capacity by 2032. It has 3.5 GW of installed capacity, with over 28 GW under development.

According to the DRHP filing, IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the book-runners for the public issue.