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NTPC Green Energy Ltd, a wholly-owned subsidiary of public sector NTPC Ltd, has received final observation from market regulator Securities and Exchange Board of India (SEBI) to raise Rs 10,000 crore through an initial public offering (IPO).
The IPO with a face value of Rs 10 per equity share is entirely a fresh issue of equity shares. The offer also includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion, according to the company.
The proceeds from the fresh issue to the extent of Rs 7,500 crore will be used for investment in its wholly-owned subsidiary, NTPC Renewable Energy Ltd (NREL) for repayment/ prepayment, in full or in part of certain outstanding borrowings availed by NREL and general corporate purposes.
Promoted by NTPC Ltd, NTPC Green Energy is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of June 30, 2024 and power generation in Fiscal 2024, according to a CRISIL report mentioned in the draft prospectus.
As of June 30, 2024, NTPC Green’s “portfolio” consisted of 14,696 MWs including 2,925 MWs of operating projects and 11,771 MWs of contracted and awarded projects. Additionally, it has 10,975 MWs of “capacity under pipeline”, aggregating to 25,671 MWs together with its Portfolio.
The company’s renewable energy portfolio encompasses both solar and wind power assets with presence across multiple locations in more than six states which helps mitigate the risk of location-specific generation variability, according to CRISIL.
As of June 2024, NTPC Green had 15 offtakers across 37 solar projects and 9 wind projects and are in the process of constructing 31 renewable energy projects in 7 states consisting of 11,771 MWs contracted and awarded. It also had 2,925 MWs operating across 14 solar projects and 2 wind projects.
Its operational capacity was 3,071 MW of solar projects and 100 MW of wind projects across six states as of August 31, 2024, strategically focused on developing a portfolio of utility-scale renewable energy projects, as well as projects for public sector undertakings and Indian corporates.
NTPC Green Energy’s revenue from operations has grown at a CAGR of 46.82 per cent from Rs 910.42 crore in fiscal 2022 (on a special purpose carved-out basis) to Rs 1,962.60 crore in Fiscal 2024 (on a restated basis). The profit after tax grew at a CAGR of 90.75 per cent from Rs 94.74 crore in FY2022 (on a special purpose carved-out basis) to Rs 344.72 crore in FY2024 (on a restated basis).
For the three-month period ended June 2024, revenue from operations and profit after tax stood at Rs 578.44 crore and Rs 138.61 crore, respectively, on a restated basis.
