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Synopsis: NTPC Green Energy, a subsidiary of NTPC Ltd, is set to raise Rs 10,000 crore through a fresh share issue, with its IPO opening on November 18, 2024. This move aims to expand its renewable energy initiatives. Institutional investors are allocated 75% of the shares, with non-institutional investors and retail participants holding the remaining 15% and 10%, respectively.
IPO Overview:
The NTPC Green Energy IPO is expected to be one of 2024’s major public offerings, aimed entirely at issuing fresh equity shares worth Rs 10,000 crore. The renewable energy arm of NTPC Ltd, the company was established in April 2022 and focuses on expanding its solar and wind energy projects across India. As of August 2024, NTPC Green Energy had a total operating capacity of 3,171 MW, encompassing 3,071 MW from solar projects and 100 MW from wind initiatives spread across six states.
Portfolio and Future Projects:
NTPC Green Energy's current renewable energy portfolio totals 14,696 MW, including 2,925 MW of operational projects and 11,771 MW of contracted and awarded projects. The company also has a pipeline of 10,975 MW, indicating its strong growth trajectory. It has established 15 off-takers for 37 solar and 9 wind projects, underscoring its market reach and demand.
Share Allocation Details:
The offering structure includes a reservation for existing NTPC Ltd shareholders, with eligibility determined by the date of the Red Herring Prospectus (RHP) filing. Besides institutional investors (75%), non-institutional investors (15%) and retail investors (10%) will have allocations. This approach ensures a broad-based participation, catering to a wide range of market participants.
Key Players and Market Strategy:
Lead managers for the IPO include IDBI Capital, HDFC Bank, IIFL Securities, and Nuvama Wealth Management, while Kfin Technologies is the registrar. Shares will be listed on the BSE and NSE. To enhance investor awareness and attract participation, NTPC Green plans roadshows in major financial centers, including Mumbai, London, Singapore, and the United States.
IPO Timing and Recent Trends:
NTPC Green’s upcoming IPO follows major public offerings such as Hyundai Motor India Ltd and Swiggy Ltd. The Hyundai IPO, raising Rs 27,856 crore, was one of the year’s largest, while Swiggy’s Rs 11,327 crore issue recently concluded. The timing places NTPC Green Energy’s IPO in a favorable market climate.
Future Prospects:
The listing of NTPC Green Energy is a strategic move by NTPC Ltd to unlock value in the renewable energy sector and position itself as a leading player in India’s energy transition. With a diverse and expanding portfolio, it aims to capitalize on the surging demand for clean and sustainable energy sources.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Potential investors are encouraged to consult a financial advisor before making investment decisions.
