NTPC Green Energy to Raise Rs 10,000 Crore Through IPO
NTPC Green Energy Limited, a wholly-owned subsidiary of NTPC Limited, is set to raise a significant Rs 10,000 crore through an initial public offering (IPO), the company announced on Monday. The Securities and Exchange Board of India (SEBI) has given its approval for this major financial undertaking. This IPO represents a fresh issue of equity shares, with a face value of Rs 10 per share.
The IPO structure also includes a dedicated reservation for eligible employees who wish to subscribe to the shares. An added incentive is a discount offered to employees participating in this employee reservation portion. This move is likely to boost employee morale and encourage greater participation in the company’s growth journey.
Proceeds Allocation and Future Plans
The company has outlined the use of funds raised through the IPO. A substantial portion of the proceeds, amounting to Rs 7,500 crore, will be directed towards investment in NTPC Renewable Energy Limited (NREL), a wholly-owned subsidiary of NTPC Green Energy. These funds will be used for repayment or prepayment of outstanding borrowings incurred by NREL, ensuring a healthy financial foundation for the subsidiary’s operations.
The remaining portion of the IPO proceeds will be utilized for general corporate purposes, contributing to the overall growth and expansion of the company. This strategic allocation of funds demonstrates NTPC Green Energy’s commitment to strengthening its position in the renewable energy sector.
A Strong Portfolio and Growth Trajectory
NTPC Green Energy’s portfolio is impressive, comprising a total of 14,696 MWs of renewable energy projects. This portfolio encompasses 2,925 MWs of operational projects and 11,771 MWs of projects that are already contracted or awarded. The company also has a pipeline of 10,975 MWs, further expanding its potential to contribute to the growing demand for renewable energy.
NTPC Green Energy’s commitment to sustainability is evident in its diverse portfolio. The company operates 15 offtakers across 37 solar projects and 9 wind projects. It is currently engaged in constructing 31 renewable energy projects in seven states, totaling 11,771 MWs. Additionally, NTPC Green Energy has an operational capacity of 3,071 MW of solar projects and 100 MW of wind projects across six states, as of August 31.
Financial Performance Highlights
NTPC Green Energy’s financial performance has been robust, exhibiting significant growth over the past few years. Operational revenue has grown at a remarkable CAGR of 46.82 per cent, rising from Rs 910.42 crore in fiscal 2022 to Rs 1,962.60 crore in fiscal 2024. Profit after tax (PAT) has also shown strong growth, increasing at a CAGR of 90.75 per cent, from Rs 94.74 crore in fiscal 2022 to Rs 344.72 crore in fiscal 2024. These impressive figures underscore NTPC Green Energy’s commitment to financial prudence and its ability to generate consistent returns for its investors.
Key Highlights of NTPC Green Energy’s IPO
* SEBI approved IPO to raise Rs 10,000 crore
* Fresh issue of equity shares with a face value of Rs 10 per share
* Employee reservation for subscription to the IPO
* Discount offered to eligible employees participating in the employee reservation portion
* Proceeds allocated for investment in NREL, repayment of borrowings, and general corporate purposes
* Strong portfolio of renewable energy projects with operational and contracted capacity
* Construction underway for 31 renewable energy projects in seven states
* Impressively strong track record of growth in operational revenue and profit
The IPO of NTPC Green Energy is expected to generate significant interest among investors seeking exposure to the fast-growing renewable energy sector. With its robust financial performance, strong portfolio, and strategic use of funds, NTPC Green Energy is well-positioned to capitalize on the growing demand for clean energy solutions. The company’s IPO represents a compelling opportunity for investors to participate in its continued success story.
