In a significant development for the renewable energy sector in India, NTPC Green Energy has secured approval from the Securities and Exchange Board of India (SEBI) for its upcoming Initial Public Offering (IPO), targeting a fundraise of ₹10,000 crore. This funding aims to accelerate the company’s renewable expansion initiatives and strengthen its position as a key player in India’s green energy landscape.
| Table of Contents |
|---|
| Company Background |
| Projects and Operations |
| IPO Structure |
| Use of Proceeds |
| Financial Performance |
| Management and Advisors |
| Conclusion |
Company Background
NTPC Green Energy, a wholly-owned subsidiary of NTPC Limited, represents a pivotal entity within India’s public sector dedicated to renewable energy, excluding hydro projects. According to a recent report by CRISIL, NTPC Green Energy stands as the largest public sector player in renewable energy by operating capacity and power generation as of Fiscal 2024. This position solidifies its role in the transition towards sustainable energy sources across the nation.
Projects and Operations
As of June 30, 2024, NTPC Green Energy is actively collaborating with 15 offtakers, and has engaged in ambitious initiatives across 37 solar and 9 wind projects. The company is currently constructing 31 renewable energy projects spanning 7 states with a total capacity of 11,771 megawatts (MW) contracted and awarded. Furthermore, NTPC Green Energy operates 14 solar projects and 2 wind projects that collectively generate 2,925 MW, showcasing its significant operational capabilities.
IPO Structure
The upcoming IPO will consist entirely of new equity shares, with a face value of ₹10 per share. A portion of the offer has been specifically reserved for qualified employees, who will benefit from a discount within the employee reservation section, ensuring that those actively working within the organization have a stake in its future growth.
Use of Proceeds
From the anticipated ₹10,000 crore raised through the IPO, approximately ₹7,500 crore is earmarked for investments in NTPC Renewable Energy Limited (NREL). Additionally, the funds will be utilized for the repayment and prepayment of certain debts associated with NREL, alongside general corporate purposes aimed at funding future projects and enhancing operational capabilities.
Financial Performance
NTPC Green Energy has displayed impressive financial growth, with a remarkable revenue growth of 46.82% over the period from FY 2022 to FY 2024, increasing from ₹910.42 crore to ₹1,962.60 crore. The profit after tax has also surged with a compound annual growth rate (CAGR) of 90.75%, moving from ₹94.74 crore in FY 2022 to ₹344.72 crore in FY 2024. For the quarter ending June 30, 2024, the company reported a revenue of ₹578.44 crore and a profit after tax of ₹138.61 crore, illustrating its robust financial health even amidst a competitive landscape.
Management and Advisors
The management of the IPO is being led by respected institutions, including IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited. The registrar for the offering is KFin Technologies Limited, ensuring a streamlined process for investors.
Conclusion
The approval of the IPO marks a critical juncture for NTPC Green Energy as it looks to bolster its aspirations in the renewable sector. With substantial financial backing, the company aims to expand its portfolio further, catering to the growing demand for renewable energy in India. This IPO not only presents a promising investment opportunity for employees and the general public but also signifies the country’s commitment to sustainable development and environmental responsibility.
FAQ
What is NTPC Green Energy?
NTPC Green Energy is a wholly-owned subsidiary of NTPC Limited, focusing on renewable energy development in India.
How much capital is NTPC Green Energy aiming to raise through its IPO?
NTPC Green Energy aims to raise ₹10,000 crore through its upcoming IPO.
What are the main uses of the funds raised from the IPO?
The funds will primarily be used for investments in NTPC Renewable Energy Limited, debt repayments, and general corporate purposes.
