- NTPC Green Energy has received SEBI approval for a ₹10,000 crore IPO.
- The IPO consists entirely of fresh equity shares with a face value of ₹10 each.
- Eligible employees will receive a discount on shares in the reservation portion.
- ₹7,500 crore will fund investments in NTPC Renewable Energy Ltd., debt repayments, and general corporate needs.
- NGEL leads in India's renewable energy sector, with a portfolio totalling 14,696 MW.
NTPC Green Energy Limited (NGEL) has received the final go-ahead from the Securities and Exchange Board of India (SEBI) to raise ₹10,000 crore through its upcoming initial public offering (IPO). This announcement comes after the company submitted its IPO application to SEBI on September 18, 2024.
The IPO, featuring a face value of ₹10 per equity share, consists solely of new equity shares. A portion of the offering is reserved for eligible employees, who will also benefit from a discount when they participate in this section.
IPO Details
- Submission Date: The IPO application was submitted to SEBI on September 18, 2024.
- Face Value: Each equity share will have a face value of ₹10.
- Share Allocation: The IPO consists entirely of new equity shares. There will be a reservation for eligible employees, who will receive a discount for bidding in this section.
- Use of Proceeds: Out of the total ₹10,000 crore, ₹7,500 crore will be allocated for:
- Investments in NTPC Renewable Energy Ltd. (NREL)
- Repayment or prepayment of certain outstanding borrowings from NREL
- General corporate purposes
Renewable Energy Leadership
Promoted by NTPC Ltd., NGEL is recognized as the largest public sector enterprise in renewable energy (excluding hydro) based on operating capacity and power generation in Fiscal 2024, as reported by CRISIL in the draft red herring prospectus (DRHP).
As of June 30, 2024, NTPC Green’s renewable energy portfolio includes:
- Total Capacity: 14,696 megawatts (MW), comprising:
- 2,925 MW from operational projects
- 11,771 MW from contracted and awarded projects
- Projects in Development: An additional 10,975 MW is under development, bringing the total capacity to 25,671 MW.
Diverse Energy Portfolio
NGEL’s renewable energy initiatives cover both solar and wind power, strategically located across more than six states. This diversity mitigates risks associated with location-specific generation variability. As of June 30, 2024:
- Active Engagement: The company collaborates with 15 offtakers through 37 solar projects and 9 wind projects.
- Construction Progress: NGEL is actively constructing 31 renewable energy projects across seven states.
Financial Performance
NGEL has shown strong financial growth in recent years:
- Revenue Growth: The company’s revenue grew from ₹910.42 crore in FY22 to ₹1,962.60 crore in FY24, reflecting a compound annual growth rate (CAGR) of 46.82%.
- Profit Growth: Profit after tax surged from ₹94.74 crore in FY22 to ₹344.72 crore in FY24, marking a CAGR of 90.75%.
- Recent Performance: For the quarter ending June 30, 2024, revenue from operations was ₹578.44 crore, with a profit after tax of ₹138.61 crore.
Managing the IPO
The IPO will be managed by IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management. KFin Technologies will serve as the registrar for the offering.
