This will be the biggest IPO by a public sector undertaking since Life Corporation of India’s INR 21,000 crore IPO in 2022. The proceeds will be utilized for repayment or prepayment of debt, and for general corporate purposes.
Oct 14, 2024
NTPC Green Energy, the renewable energy subsidiary of the state-owned National Thermal Power Corporation (NTPC), is planning to launch its INR 10,000 crore initial public offering (IPO) in the first week of November 2024.
NTPC shared in a stock filing last month that its renewable energy business subsidiary, NTPC Green Energy, has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an INR 10,000 crore IPO. This will be the biggest IPO by a public sector undertaking (PSU) since Life Corporation of India’s INR 21,000 crore IPO in 2022.
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As per media reports, NTPC Green Energy’s IPO is likely to be rolled out in November, 2024.
NTPC Green Energy’s DRHP mentions that the proceeds from its IPO will be utilized for repayment/prepayment of debt, and for general corporate purposes.
The share sale will consist entirely of a fresh issuance of equity shares, with no offer-for-sale (OFS) component.
Out of the total proceeds, the company plans to use INR 7,500 crore for payment of debt. It will use INR 4,000 crore to pay its outstanding debts in FY-25, whereas the rest INR 3,500 crore will be used to repay debts in FY-26.
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As per NTPC, NGEL has total outstanding borrowings amounting to INR 16,235.09 crore as on July 31, 2024. NTPC Green Energy will not use more than 25 percent of the IPO’s net proceeds, it added.
NTPC aims to achieve 60 GW of renewable energy (RE) capacity by FY32. It currently has 3.5 GW of installed capacity and more than 28 GW is under development.
