NTPC Green Energy Files Draft Papers for $1.2 Billion IPO

NTPC Green Energy Ltd., a subsidiary of state-owned NTPC Ltd., has filed its draft red herring prospectus (DRHP) for an initial public offering (IPO) to raise Rs.10,000 crore ($1.2 billion). The entire issue will consist of new shares, with no offer-for-sale component from existing shareholders, according to the draft filing.

IPO Highlights 

The IPO is being launched amid India’s push to boost renewable energy capacity to 500 GW by 2030, up from the current 200 GW. This focus on renewables, combined with a thriving stock market, positions NTPC Green’s IPO as an investment opportunity that can’t be overlooked. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities,  said that green energy is expected to remain a focal point for investors in the near term.

Use of Proceeds

According to the DRHP, NTPC Green plans to allocate Rs.4,000 crore in FY 25 towards the repayment of loans availed by its subsidiary, NTPC Renewable Energy Ltd. Another Rs.3,500 crore will go towards debt repayment by March 2026. Following these repayments, NTPC Green’s consolidated debt will decrease to Rs.8,735 crore. Around 25% of the IPO proceeds will be used for general corporate purposes, including growth opportunities, partnerships, and acquisitions.

Financials & Capacity

For Q1FY25, NTPC Green reported a net profit of Rs.138.6 crore on total revenues of Rs.578.4 crore. In FY24, the company earned Rs.344.7 crore in net profit on revenues of Rs.1,962.6 crore. NTPC Green has an installed renewable energy capacity of 3.55 GW, with 8.13 GW under construction and a pipeline of 10.57 GW.

Conclusion: NTPC Green’s IPO comes as the company seeks to capitalize on India’s renewable energy expansion and diversify its portfolio. With the IPO market in India experiencing a surge—235 companies have raised over Rs.71,000 crore this year—NTPC Green’s offer is likely to attract attention from investors focused on the green energy sector.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.