NTPC Green Energy Ltd, a wholly-owned subsidiary of NTPC Ltd, has received final approval from the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) aimed at raising ₹10,000 crore.
The IPO will feature a face value of ₹10 per equity share and will consist entirely of fresh equity shares. In addition, the offer includes a reservation for eligible employees, who will also benefit from a discount when bidding in the employee reservation portion.
The proceeds from the fresh issue specifically, ₹7,500 crore are earmarked for investments in NTPC Renewable Energy Ltd (NREL). These funds will assist with the repayment or prepayment of certain outstanding borrowings held by NREL, as well as for general corporate purposes.
NTPC Green Energy is recognized as the largest public sector enterprise in renewable energy (excluding hydro) based on operating capacity as of June 30, 2024, as noted in a CRISIL report included in its draft prospectus. The company currently operates 37 solar projects and 9 wind projects, serving 15 off takers, and is in the process of constructing 31 additional renewable energy projects across 7 states. These projects have a total contracted capacity of 11,771 MW. Additionally, NTPC Green Energy operates 2,925 MW through 14 solar projects and 2 wind projects.
The company has demonstrated impressive growth, with revenue from operations increasing at a compound annual growth rate (CAGR) of 46.82% from ₹910.42 crore in fiscal 2022 to ₹1,962.60 crore in fiscal 2024. Meanwhile, profit after tax soared at a CAGR of 90.75%, rising from ₹94.74 crore in FY2022 to ₹344.72 crore in FY2024.
