NTPC Green Energy targets Rs 10,000 crore IPO splash; Here’s what brokerages say
NTPC Green Energy Ltd. (NGEL) will launch its much-awaited initial public offering (IPO) on November 19, which aims to raise around Rs 10,000 crore. This makes NGEL India’s second-largest public sector IPO, following Life Insurance Corporation’s (LIC) record-setting last year.
The IPO highlights NTPC’s aggressive push to expand its renewable energy portfolio, marking a milestone in India’s transition to green energy.
The issue will remain open for subscription till November 22, with a price band set between Rs 102 and Rs 108 per share.
Distribution of IPO and use of proceeds
The IPO will reserve 75% of the shares to institutional investors, 15 percent to non-institutional investors, and 10 percent to retail investors. Eligible employees can get a discount of Rs 5 per share, with Rs 200 crore allocated under the employee share. Another Rs 1,000 crore has been set aside for the existing shareholders of NTPC.
The proceeds of Rs 7,500 crore from the IPO will be used to invest in NTPC Renewable Energy Ltd. (NREL) to pay other outstanding debts and for general business purposes.
Company vision: Strong growth plans in renewable energy
NTPC Green Energy is the largest renewable energy business in the public sector (excluding hydro) in India as of September 2024. The company’s portfolio includes three thousand two hundred and twenty megawatts (MW) of solar projects and one hundred MW of wind projects in six states . It has a pipeline of over 13500 MW of contracted projects and another nine thousand and seventy five MW under development.
The company aims to scale its renewable capacity to sixty GW by FY32, with over twenty eight GW currently under development. The IPO will be the third largest of the year, following Hyundai Motor India’s Rs 27,870 crore and Swiggy’s Rs 11,300 crore.
