Key Points
- SEBI approves NTPC Green Energy’s ₹10,000 crore IPO.
- The company is the largest public sector renewable energy firm by capacity.
- NTPC Green is working with 15 buyers through various projects.
- Money from the IPO will go toward investments and paying off debt.
- Revenue grew by 46.82%, and profits rose significantly.
Looma News
NTPC Green Energy, fully owned by NTPC, has received final approval from the Securities and Exchange Board of India (SEBI) for a ₹10,000 crore initial public offering (IPO). The company filed its IPO documents on September 18, 2024.
Company Overview
NTPC Green Energy, backed by NTPC Ltd, is the largest public sector renewable energy company (not counting hydro) by operating capacity and power generation as of Fiscal 2024, according to a CRISIL report in its draft red herring prospectus (DRHP). As of June 30, 2024, the company works with 15 buyers across 37 solar projects and 9 wind projects. NTPC Green is also building 31 renewable energy projects in 7 states, totaling 11,771 MWs contracted. It operates 2,925 MWs through 14 solar projects and 2 wind projects.
IPO Details
The NTPC Green Energy IPO will have a face value of ₹10 per share and will consist entirely of new shares. A portion of the offer is reserved for qualified employees, with discounts available for those participating in this section. The ₹7,500 crore raised will be used for investments in NTPC Renewable Energy Limited (NREL), repaying some existing debts linked to NREL, and for general corporate needs.
Financial Performance
NTPC Green Energy has seen a revenue growth rate of 46.82%, jumping from ₹910.42 crore in fiscal 2022 to ₹1,962.60 crore in fiscal 2024. Profits after tax have grown at an annual rate of 90.75%, increasing from ₹94.74 crore in fiscal 2022 to ₹344.72 crore in fiscal 2024. For the quarter ending June 30, 2024, revenue from operations hit ₹578.44 crore, with a profit after tax of ₹138.61 crore, based on adjusted figures.
Management
The lead managers for this offering are IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited. KFin Technologies Limited will handle the registration for the offering.
