Upcoming IPO: NTPC Green Energy, a wholly owned subsidiary of NTPC, has been issued final observation by the Securities and Exchange Board of India (SEBI), allowing them to raise ₹10,000 crore through an initial public offering (IPO). The company submitted its IPO documents to SEBI on September 18, 2024.
Promoted by NTPC Ltd, NTPC Green Energy stands as the largest public sector enterprise in renewable energy (excluding hydro) by operating capacity and power generation in Fiscal 2024, according to a CRISIL report referenced in the draft red herring prospectus (DRHP).
As of June 30, 2024, NTPC Green was engaged with 15 offtakers through 37 solar projects and 9 wind projects, and is currently constructing 31 renewable energy projects across 7 states that total 11,771 MWs contracted and awarded. Additionally, it operated 2,925 MWs through 14 solar projects and 2 wind projects.
NTPC Green Energy IPO, which has a face value of ₹10 per equity share, consists entirely of new equity shares.
The offer includes a portion specifically set aside for qualified employees, with a discount available for those who engage in the employee reservation section. The proceeds from this new issuance, totalling ₹7,500 crore, will be directed towards investments in NTPC Renewable Energy Limited (NREL), repaying or prepaying certain existing debts associated with NREL, as well as for general corporate needs.
The lead managers handling this offering are IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited, while KFin Technologies Limited will act as the registrar for the offering.
NTPC Green Energy has seen a revenue growth rate of 46.82%, rising from ₹910.42 crore in fiscal 2022 to ₹1,962.60 crore in fiscal 2024. The profit after tax has grown at a CAGR of 90.75%, increasing from ₹94.74 crore in fiscal 2022 to ₹344.72 crore in fiscal 2024.
For the quarter ending June 30, 2024, revenue from operations reached ₹578.44 crore, with a profit after tax of ₹138.61 crore, both figures calculated on a restated basis.
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