NTPC Green Energy IPO: Rs 10,000 Crore IPO Opens November 19, Check Details
NTPC Green Energy IPO
NTPC Green Energy IPO: Rs 10,000 Crore Public Issue to Open on November 19
NTPC Green Energy IPO: NTPC Green Energy Limited (NGEL), a wholly-owned subsidiary of India’s largest power generation company,
NTPC Ltd., is all set to launch its Initial Public Offering (IPO) on November 19, 2024. The company is looking to raise Rs 10,000 crore through this public issue, marking a significant step in its commitment to scaling up India’s renewable energy capacity.
The price band for the IPO has been set between Rs 102 to Rs 108 per share. This will be a fresh issuance of equity shares, with no Offer for Sale (OFS) component, meaning the entire proceeds from the IPO will go directly to NTPC Green Energy to fund its ambitious growth plans. The issue will remain open for subscription until November 22, 2024.
Institutional investors will have an exclusive opportunity to participate in the anchor book, which will open on November 18, 2024, with a potential allocation of up to Rs 3,960 crore.
Why the NTPC Green Energy IPO is Crucial for India’s Renewable Future
NTPC Green Energy’s IPO is a key component of the company’s strategy to expand its renewable energy portfolio and support India’s transition to a cleaner energy future.
The funds raised will play a critical role in helping NGEL achieve its target of installing 60 GW of renewable energy capacity by FY2032, enough to power approximately 4.5 crore homes.
One of the biggest challenges in the renewable energy sector is the intermittency of power generation, where electricity produced from solar and wind sources is not available consistently throughout the day. NTPC is actively working to overcome this challenge by integrating grid-scale storage solutions, which will ensure reliable 24/7 renewable energy availability.
The successful completion of the IPO will help NGEL accelerate its plans and contribute to NTPC’s overall goal of sourcing 45% of its total energy generation from renewable sources by 2032.
This is in line with India’s broader commitment to scaling up its renewable energy capacity to 500 GW by 2030 as part of its efforts to achieve net-zero carbon emissions by 2070.
Key Details of NTPC Green Energy IPO
The IPO will be allocated as follows:
- 75% of the net offer will be reserved for Qualified Institutional Buyers (QIBs),
- 15% for Non-Institutional Investors (NIIs), and
- 10% for Retail Investors.
Shares of NTPC Green Energy are expected to be listed on both BSE and NSE from November 27, 2024.
NTPC Green Energy’s Renewable Energy Initiatives
NTPC Green Energy is at the forefront of India’s push for renewable energy. It will oversee all future renewable energy capacity additions for the NTPC Group.
As of now, NGEL has already commissioned 4.013 GW of renewable energy projects, with plans to add another 3 GW in the current financial year.
Looking ahead, NGEL plans to significantly ramp up its renewable energy capacity. By FY2026, it aims to add 5 GW, and by FY2027, its operational renewable energy capacity will reach 19.4 GW.
Among NGEL’s notable projects is the largest renewable energy project undertaken by any public sector company at Khavda in Gujarat.
This includes two solar projects with a combined capacity of 2.45 GW. The company is also forging new partnerships, such as a joint venture with Rajasthan Rajya Vidyut Utpadan Nigam Ltd. and Mahatma Phule Renewable Energy and Infrastructure Technology Ltd., to develop 35 GW of renewable energy projects across Rajasthan and Maharashtra.
Further, NGEL is spearheading a green hydrogen hub project in Pudimadka, Andhra Pradesh, and developing 2 GW of round-the-clock renewable energy capacity, including one of the world’s largest 24/7 renewable energy projects, which will feature a 1.3 GW capacity.
Utilization of IPO Proceeds
The funds raised from the IPO will primarily be used for:
- Repaying Debt: A significant portion—around Rs 7,500 crore—will be used to repay the debt of NTPC Renewable Energy Ltd. (NREL), a subsidiary of NTPC Green Energy. As of July 2024, NREL’s total debt stood at Rs 16,235 crore.
- General Corporate Purposes: The remaining funds will be allocated for various corporate purposes, including funding future renewable energy projects, expansion, and further strengthening of the company’s balance sheet.
This capital infusion is expected to help NTPC Green Energy accelerate its ambitious renewable energy projects, solidifying its position as a leader in India’s green energy transition.
About NTPC
NTPC Limited, formerly known as National Thermal Power Corporation, is India’s largest integrated power company with an installed capacity of over 76 GW.
It has been a pioneer in driving India’s energy transition by focusing on both thermal and renewable energy sources.
The company’s renewable energy portfolio is poised to grow rapidly in the coming years, driven by the strategic efforts of NTPC Green Energy.
