NTPC Green Energy, a subsidiary of NTPC Limited, is making headlines after receiving approval from SEBI for a ₹10,000 crore initial public offering (IPO). This move aims to bolster India’s renewable energy capacity, aligning with national sustainability goals. Here’s an in-depth look at NTPC Green’s IPO details, growth trajectory, and what it means for potential investors.
Understanding NTPC Green Energy’s ₹10,000 Crore IPO
This IPO is a fresh equity issue with a face value of ₹10 per share. SEBI’s approval marks a significant step for NTPC Green Energy in raising capital for its ambitious expansion plans, especially in renewable energy through NTPC Renewable Energy Limited, a wholly-owned subsidiary.
NTPC Green Energy IPO Highlights
| Aspect | Details |
|---|---|
| IPO Size | ₹10,000 crore |
| Face Value | ₹10 per share |
| Usage of Proceeds | Investments in NTPC Renewable Energy Limited |
| Reservation for Employees | Yes, with discount on bids |
| Key Lead Managers | HDFC Bank, IDBI Capital, IIFL Securities |
NTPC Green Energy’s Growth in the Renewable Sector
NTPC Green Energy has demonstrated substantial growth, with a compound annual growth rate (CAGR) of 46.82% in revenue over the past two fiscal years. The funds from the IPO will support project developments like solar and wind initiatives, contributing to India’s renewable energy goals.
- Revenue Growth: From ₹910.42 crore in FY22 to ₹1,962.60 crore in FY24.
- Operational Capacity: 3,071 MW in solar, 100 MW in wind across six Indian states.
- Projects in Pipeline: Nearly 11,000 MW, indicating the company’s aggressive expansion plans.
NTPC’s MoU with Rajasthan Government
In September 2024, NTPC Green Energy signed an MoU with the Rajasthan government to develop 25 GW of renewable projects. This partnership is expected to enhance NTPC’s footprint in renewable energy further, positioning it as a leading public sector company in the field.
Investment Potential and Market Impact
The IPO offers investors a unique opportunity to engage with India’s growing renewable sector, which is expected to see long-term gains. With a healthy portfolio and strategic expansion plans, NTPC Green Energy’s IPO may attract a wide range of investors.
Conclusion
NTPC Green Energy’s ₹10,000 crore IPO approval signals a pivotal moment in India’s energy sector. With strong governmental support, high growth potential, and a commitment to sustainable energy, NTPC Green is poised for significant impact.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Consult a financial professional for investment decisions.
