Construction Industry News
NTPC Green Energy, a subsidiary of state-owned energy utility NTPC, was reportedly planning to launch its initial public offering (IPO) to raise Rs 100 billion in the first week of November, a source said. The week before, the company had filed preliminary documents with capital markets regulator Sebi to raise the same amount through the IPO.
The source said the IPO was expected to be launched in early November. In addition, the company had planned to hold roadshows in India, particularly in Mumbai, and abroad, with a focus on Singapore.
According to the draft red herring prospectus (DRHP), the IPO would consist entirely of a fresh issue of shares, without any offer-for-sale (OFS) component. The company specified that Rs 75 billion of the proceeds would be used to repay or prepay part or all of the outstanding borrowings of its subsidiary, NTPC Renewable Energy Ltd (NREL), while a portion would go towards general corporate purposes.
The filing came at a time when India's IPO market has seen a lot of activity, with around 60 headline companies launching their IPOs so far this year. NTPC Green Energy, a 'Maharatna' central public sector undertaking, has a renewable energy portfolio that includes solar and wind assets in over six states.
As of August 2024, the company’s operational capacity included 3,071 MW of solar projects and 100 MW of wind projects. The NTPC group as a whole aims to reach 60 GW of renewable energy capacity by 2032, with 3.5 GW already installed and over 28 GW under development.
India’s renewable energy sector was reported to be growing rapidly. Globally, India ranked fourth in clean energy capacity, particularly in wind and solar installations, as cited in the concept paper based on a Crisil report. The country’s installed renewable energy capacity had increased from 63 GW in FY12 to 123 GW in FY21, reaching around 191 GW by March 2024, including large hydropower. At that time, renewable energy accounted for nearly 43% of India’s total electricity generation capacity, with solar power leading this growth.
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