NTPC Green Energy IPO – Key Details to Note

NTPC Green Energy IPO is one of the upcoming IPOs in India. This 100% book-built issue is a fresh offering with a face value of ₹10 per share, aiming to raise up to ₹1,00,000 million. 

Though the specific IPO dates and price band have yet to be announced, the company will list on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Objects of the Issue

The net proceeds from this IPO are earmarked for crucial funding objectives. Firstly, a significant portion will be invested in NTPC Renewable Energy Limited (NREL), which will be used for the repayment or prepayment of certain outstanding borrowings availed by NREL. Additionally, the funds will also cater to general corporate purposes, enhancing the company’s operational flexibility.

Financial Performance

In terms of financial performance, NTPC Green Energy reported revenue from operations of ₹19,625.98 million in FY 2024, an increase from ₹14,497.09 million in FY 2023. However, the profit after tax for FY 2024 was ₹3,447.21 million, down from ₹4,564.88 million in FY 2023. 

About NTPC Green Energy Limited

NTPC Green Energy Limited is a wholly-owned subsidiary of NTPC Limited, which is recognised as a ‘Maharatna’ central public sector enterprise. 

As of June 30, 2024, NTPC Green Energy is the largest renewable energy public sector enterprise (excluding hydro) in terms of operational capacity and power generation for the fiscal year 2024. The company has a diverse renewable energy portfolio, including both solar and wind power assets across multiple locations in more than 6 states, which helps mitigate the risk of generation variability associated with specific locations.

As of August 31, 2024, NTPC Green Energy had an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects. The company is strategically focused on developing a robust portfolio of utility-scale renewable energy projects, as well as specialized projects for public sector undertakings (PSUs) and Indian corporates. Its projects generate renewable power that is fed into the grid, with long-term Power Purchase Agreements (PPAs) or Letters of Award (LoAs) in place with reliable off-takers, including Central and State government agencies.

Market Opportunity

The renewable energy sector in India represents a significant growth opportunity. During the 26th Conference of the Parties climate summit held in Glasgow, Prime Minister Modi updated India’s Nationally Determined Contributions (NDCs), including ambitious goals to reduce emissions intensity and achieve a significant share of electric power installed capacity from non-fossil fuel-based energy sources by 2030. 

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.