NTPC Green Energy, NTPC’s renewable unit, filed preliminary papers with the market regulator SEBI to raise Rs 10,000 crore through an Initial Public Offering (IPO).
According to documents filed at the Securities and Exchange Board of India, the initial share sale represents a new issue of equity and there is no Offer for Sale (OFS).
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What Will The Company Do With The Money?
The renewable energy company stated that the Rs 7,500 crore raised will be used partially or completely to repay the outstanding debts of its subsidiary NTPC Renewable Energy Limited.
A portion will also be used for corporate purposes. We can tell you that so far this year, about 60 large companies have raised capital through an IPO.
The book-running lead managers of this issue are HDFC Bank, Nuvama, IDBI Capital Markets & Securities, and IIFL Securities.
We can tell you that the renewable energy industry in India is growing quickly.
According to a report mentioned in the draft India is currently ranked fourth in the world for renewable energy capacity.
How Large Is The Business
NTPC Green Energy belongs to the Central Public Sector Enterprises of Maharatna. The company has assets in solar and wind energy spread over more than six different states.
The company’s operating capacity in August 2024 included 3,071MW of solar projects and 100MW of wind projects spread across six states.
The NTPC Group aims at 60 GW renewable energy capacity in 2023. Currently, 3.5 GW has been installed. The capacity of 28 GW is being worked on.
Quick Fact
| Company name | NTPC Green Energy |
|---|---|
| IPO Size | ₹10,000 crore |
| Funds for Debt | ₹7,500 crore |
| Use of Funds | Debt repayment, corporate purposes |
| IPO Type | New issue of equity |
| No Offer for Sale | Yes |
| Lead Managers | HDFC Bank, Nuvama, IDBI Capital, IIFL |
| Renewable Assets | Solar, wind |
| States Involved | 6 |
| Installed Solar | 3,071 MW |
| Installed Wind | 100 MW |
| Renewable Energy | 3.5 GW installed |
| Upcoming Projects | 28 GW |
| Global Rank | 4th in renewable energy capacity |
| Parent Company | NTPC (Maharatna) |
| Renewable Energy Target | 60 GW in 2023 |
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