"NTPC Green Energy Secures SEBI Approval for ₹10,000 Crore IPO"

NTPC Green Energy, a fully owned subsidiary of NTPC, has received final approval from the Securities and Exchange Board of India (SEBI) to proceed with an initial public offering (IPO) aimed at raising ₹10,000 crore. The company submitted its IPO application to SEBI on September 18, 2024.

According to a CRISIL report cited in its draft red herring prospectus (DRHP), NTPC Green Energy, backed by NTPC Ltd, is recognized as the largest public sector player in renewable energy (excluding hydro) in terms of operational capacity and power generation for Fiscal 2024.

As of June 30, 2024, NTPC Green Energy was collaborating with 15 offtakers on 37 solar and 9 wind projects. The company is also in the process of constructing 31 renewable energy projects across 7 states, with a total capacity of 11,771 MW contracted and awarded. Additionally, it operated 2,925 MW through 14 solar and 2 wind projects.

 NTPC Green Energy IPO Overview

The NTPC Green Energy IPO features a face value of ₹10 per equity share and comprises entirely new equity shares. A portion of the offer is specifically allocated for qualified employees, who will benefit from a discount for participating in the employee reservation segment.

The total proceeds from this new issuance, amounting to ₹7,500 crore, will be utilized for investments in NTPC Renewable Energy Limited (NREL), as well as for repaying or prepaying certain existing debts linked to NREL, along with general corporate purposes.

The lead managers for this offering include IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited. KFin Technologies Limited will serve as the registrar for the IPO.

Financial Performance

NTPC Green Energy experienced a revenue growth rate of 46.82%, climbing from ₹910.42 crore in fiscal year 2022 to ₹1,962.60 crore in fiscal year 2024. The profit after tax showed a compound annual growth rate (CAGR) of 90.75%, rising from ₹94.74 crore in fiscal 2022 to ₹344.72 crore in fiscal 2024.

For the quarter ending June 30, 2024, the company reported operational revenue of ₹578.44 crore, along with a profit after tax of ₹138.61 crore, based on restated financials.

Conclusion

As the world increasingly shifts towards renewable energy sources, NTPC Green Energy is poised to play a crucial role in India's energy landscape. The upcoming IPO not only presents a significant fundraising opportunity for the company but also reflects its commitment to sustainable development. Investors looking to tap into the growing renewable energy sector may find this IPO to be a promising opportunity. With strong financials and a strategic focus on expanding its renewable energy footprint, NTPC Green Energy is certainly a company to watch in the upcoming months.

This IPO could mark a pivotal moment for both the company and its investors, aligning with the global push for cleaner energy solutions.


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