NTPC Green Energy, the renewable energy subsidiary of state-owned National Thermal Power Corporation (NTPC), is preparing to launch its initial public offering (IPO) worth ₹10,000 crore. The IPO is expected to be introduced in the first week of November 2024, according to reports by CNBC-TV18.
The company plans to conduct a series of roadshows in key financial hubs, including Mumbai, London, the United States, and Singapore, to attract investors and generate interest in the offering. These roadshows will allow potential investors to engage with NTPC Green Energy’s management and assess the company’s growth prospects and potential returns.
Unlike many public offerings, the IPO will consist entirely of a fresh issue of equity shares, with no offer-for-sale (OFS) component. Proceeds from the offering will be used primarily to repay a portion of the outstanding loans of its subsidiary, NTPC Renewable Energy Ltd (NREL), as well as to support general corporate purposes.
Mohit Bhargava, CEO of NTPC Green Energy, highlighted the necessity of raising equity through either internal accruals or market offerings to meet the company’s expansion goals. NTPC Green Energy, established in 2021, plays a crucial role in NTPC’s broader plan to develop 60 GW of renewable energy capacity by 2032.
The decision to list the company aligns with NTPC’s strategy to unlock value for its renewable energy arm while benefiting from the rising market valuations of green energy firms. The company has appointed IDBI Capital, HDFC Bank, IIFL Securities, and Nuvama Wealth Management as book-running lead managers for the IPO.
NTPC Green Energy’s public listing is seen as a strategic move to bolster its visibility, expand its market presence, and secure long-term capital for its clean energy projects.
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