NTPC Green Energy Files DRHP With SEBI For Rs 10,000 Crore IPO; Check Key Dates & Other Details Here

NTPC Green Energy, a subsidiary of NTPC Ltd, India's largest power producer, has taken a step toward expanding its renewable energy footprint by filing draft papers with the Securities and Exchange Board of India (SEBI) on Wednesday. The company is seeking to raise Rs 10,000 crore through an initial public offering (IPO).

According to the draft red herring prospectus (DRHP) filed with SEBI, the entire IPO will consist of fresh equity shares with no offer-for-sale (OFS) component. This means that the existing stakeholders in the company will not be diluting their shares, and all funds raised will come from newly issued shares.

NTPC Green Energy has clear plans for the utilization of the Rs 10,000 crore it seeks to raise. Of this amount, Rs 7,500 crore will be allocated to repay or prepay a portion of the outstanding loans of its subsidiary, NTPC Renewable Energy Ltd. (NREL). The remaining funds will be directed toward general corporate purposes, helping the company boost its operational capabilities.

The decision to file for an IPO comes at a time when India's stock market is seeing heightened activity in public listings. Nearly 60 mainboard companies have launched IPOs this year, making it a highly competitive environment. NTPC Green Energy's entry is expected to attract attention from both domestic and international investors.

NTPC Green Energy is part of NTPC, a 'Maharatna' public sector enterprise, with a robust renewable energy portfolio that spans across multiple states in India. The company has a strong presence in both solar and wind energy projects. As of August 2024, NTPC Green Energy operates 3,071 MW of solar power capacity and 100 MW from wind projects. These assets are strategically located in over six states, including key regions known for their renewable energy potential.

NTPC Ltd, the parent company, has set an ambitious goal to achieve 60 GW of renewable energy capacity by 2032. Currently, the group has an installed capacity of 3.5 GW, with more than 28 GW of projects in various stages of development.

India's renewable energy sector has seen rapid expansion in recent years, fueled by the government's push to reduce carbon emissions and transition to cleaner energy sources. A recent Crisil report, referenced in NTPC Green Energy's draft papers, highlights India's global standing in renewable energy. The country ranks fourth in the world for installed renewable energy capacity, with a particular focus on wind and solar energy installations.

India's installed renewable energy capacity has grown from 63 GW in FY12 to 123 GW in FY21, and it reached approximately 191 GW by March 2024. This includes large hydro projects, which contribute to the country's overall renewable energy output. Solar energy has been the main driver of this growth, accounting for a significant portion of the capacity increase. Currently, renewable energy makes up about 43% of India's total power generation capacity.

NTPC Green Energy has appointed a consortium of reputable financial institutions to manage its upcoming IPO. The book-running lead managers include IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management.