The Securities and Exchange Board of India (SEBI) has approved NTPC Green Energy, the company’s renewable energy business, to move on with its eagerly awaited initial public offering (IPO). The company intends to raise Rs 10,000 crore through the issuance, having first submitted its draft documents to SEBI on September 18, 2024.
The IPO will be a completely new offering with a face value of Rs 10 per equity share. Employees who bid under the employee reservation category receive a discounted fee in addition to a reservation portion for qualified employees.
This strategy seeks to give staff members a chance to contribute to the expansion of the business in the future. NTPC Renewable Energy Ltd. (NREL), a wholly owned subsidiary of NTPC Green Energy, would get a sizeable share of the Rs 7,500 crore in funds raised. The remaining funds will be used for general business reasons, with the majority of this funding going toward the full or partial repayment of certain outstanding NREL loans.
Based on operating capacity as of June 30, 2024, and power generation in Fiscal 2024, NTPC Green Energy is currently India’s largest public sector renewable energy firm (excluding hydro), per a CRISIL report referenced in the Draft Red Herring Prospectus (DRHP).
NTPC Green Energy is entirely owned by NTPC Ltd., solidifying its position in India’s shift to renewable energy. By Fiscal Year 2032, NTPC Ltd. wants to reach 60 gigawatts (GW) of renewable energy capacity, and NTPC Green Energy wants to be a key part of that ambition. The company is committed to growing India’s renewable energy landscape, as evidenced by the 3.5 GW of installed renewable power it now has and the additional 28 GW it is actively developing.
