NTPC Green Energy Ltd., the renewable energy arm of NTPC Ltd., has received final observation from the capital markets regulator SEBI to raise ₹10,000 crore through an initial public offering (IPO).

The company had filed its IPO papers with SEBI earlier on September 18, 2024.

The IPO with a face value of ₹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.

Proceeds from the fresh issue to the extent of ₹7,500 crore will be used for investment in its wholly owned subsidiary, NTPC Renewable Energy Ltd. (NREL) for repayment, 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 DRHP.

NTPC management is aiming for significant value unlocking through the listing of NTPC Green Energy, sources told.

Mohit Bhargava, CEO of NTPC Green Energy, had said that the primary reason for considering an IPO is the significant need for equity in the business.

“We will have to raise equity either through internal accruals or from the markets. So we feel that we will have to go to the market at some point of time.”

NTPC Green Energy is a wholly owned subsidiary of NTPC.

NTPC aims to achieve 60 gigawatts (GW) of renewable energy (RE) capacity by FY32. It currently has 3.5 GW of installed capacity and more than 28 GW under development.

IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management will act as the book-running lead managers for the issue.

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Published on Oct 28, 2024 4:58 PM IST