NTPC Green Energy, the subsidiary of NTPC, has taken a significant step towards its Rs 10,000 crore initial public offering (IPO). According to reports, the company has shortlisted four investment banks. The NTPC green energy IPO will be the largest by a state-owned entity since LIC’s offering in 2022. The selection of these i-banks signals a pivotal moment in India’s renewable energy ventures.
Let us take a look at the key details of the upcoming mega NTPC Green Energy IPO worth Rs 10000Cr.
NTPC Green Energy Limited IPO| Highlights
- NTPC Green Energy selects four investment banks to manage its Rs 10,000 crore IPO.
- IDBI Capital Markets, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the chosen banks. According to reports, IDBI Capital submitted the lowest bid.
- The IPO proceeds will drive NTPC Green Energy’s future initiatives.
- NTPC Green plans to go public in FY25 with a pipeline of around 25-26 GW, including 8 GW under construction.
- This IPO will be the largest public sector share sale for 2024. Thus marking a significant move in state-owned entities’ public offerings.
About NTPC Green Energy Limited
Formed on October 7, 2020, NTPC Renewable Energy Ltd. (NTPCREL) is a wholly owned subsidiary of NTPC Limited, India’s largest power utility. NTPCREL aims to boost the company’s renewable energy growth. Its goal is to expand its green footprint across India, offshore locations, and overseas.
The company is implementing large solar, wind, and hybrid projects nationwide. It is also developing gigawatt-scale renewable energy parks and projects in various states under the Government of India’s UMREPP (Ultra Mega Renewable Energy Power Park) scheme.
A dozen investment banks had expressed interest in overseeing the NTPC Green share sale.
After conducting financial and technical evaluations, the four selected banks are:
- IDBI Capital Markets and Securities
- HDFC Bank
- IIFL Securities
- Nuvama Wealth Management
Other contenders for the IPO mandate included Goldman Sachs, Axis Capital, ICICI Securities, and DAM Capital.
IDBI Capital submitted the most competitive bid.
Utilisation of NTPC Green Energy IPO Funds
The IPO proceeds will finance ongoing and future projects of the NTPC subsidiary across solar energy, green hydrogen, and green ammonia.
NTPC initially intended to sell a 20 percent stake in NTPC Green to a strategic investor but later shelved the plan.
NTPC Green Energy IPO date:
In an interview with CNBC TV18 on February 27, Mohit Bhargava, CEO of NTPC Green Energy, announced plans for an IPO in FY25. The company is progressing with a project pipeline of nearly 25-26 GW, with 8 GW currently under construction.
Partnerships and Government Agreements
NTPC Green entered into a memorandum of understanding with the Maharashtra government in January. The project focused on green hydrogen and derivatives development. The agreement includes plans for pumped storage projects and renewable energy initiatives. The project has an investment potential of about Rs 80,000 crore.
Other Public Sector IPOs
The Rs 10,000 crore IPO by NTPC Green will be the largest by a public sector company since Life Insurance Corporation’s Rs 21,000 crore IPO in May 2022.
It also follows the successful Rs 2,150 crore share sale of the Indian Renewable Energy Development Agency (IREDA). The major IREDA share sale in November 2023 was oversubscribed by 38.8 times.
Conclusion
NTPC Green’s upcoming IPO, set to raise Rs 10,000 crore, signals a pivotal moment for India’s renewable energy sector. This IPO represents more than just a financial milestone—it reflects a strategic shift towards sustainable development.
NTPC Green is continuously advancing its vision to expand solar and hydrogen projects. This initiative reflects the role of the public sector towards India’s green future.
Source– moneycontrol.com, ntpcrel.co.in
______________________________________________________________________________________
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.