(Photo : ntpc.co.in)

• NTPC Green Energy has received SEBI approval for a Rs 10,000 crore IPO, marking a milestone in India's renewable energy sector.
• The IPO proceeds, amounting to Rs 7,500 crore, will be invested in NTPC Renewable Energy Limited (NREL) for debt reduction and other corporate purposes.
• NTPC Green Energy boasts a robust portfolio of 14,696 MWs and has shown remarkable financial growth, with a CAGR of 46.82% in operational revenue.
• The IPO comes at a time of growing investor interest in renewable energy, reflecting the company's strong fundamentals and potential for growth.

In a significant development in India's renewable energy sector, NTPC Green Energy Limited, a wholly-owned subsidiary of NTPC Limited, has received approval from the Securities and Exchange Board of India (SEBI) to raise Rs 10,000 crore through an initial public offering (IPO). This move marks a significant milestone in the company's journey, reflecting its commitment to sustainable energy and its ambition to expand its renewable energy portfolio.

The IPO, with a face value of Rs 10 per equity share, is 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. This provision underscores the company's commitment to its employees and its belief in their role in the company's success.

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 Limited (NREL). The funds will be utilized for repayment or prepayment, in full or in part, of certain outstanding borrowings availed by NREL, and for general corporate purposes.

Robust Portfolio and Financial Performance

NTPC Green Energy's portfolio is impressive, consisting of 14,696 MWs, including 2,925 MWs of operating projects and 11,771 MWs of contracted and awarded projects as of June 30. Additionally, it has 10,975 MWs of "capacity under pipeline", aggregating to 25,671 MWs together with its portfolio. This robust portfolio underscores the company's position as a leading player in the renewable energy sector.

The company's operational revenue has shown a remarkable growth, registering a CAGR of 46.82 per cent from Rs 910.42 crore in fiscal 2022 to Rs 1,962.60 crore in fiscal 2024. The Profit after tax (PAT) grew at a CAGR of 90.75 per cent from Rs 94.74 crore in fiscal 2022 to Rs 344.72 crore in fiscal 2024. These figures reflect the company's strong financial performance and its ability to generate substantial returns.

The company's renewable energy portfolio encompasses both solar and wind power assets with presence across multiple locations in more than six states. This geographical diversification helps mitigate the risk of location-specific generation variability.

Growing Investor Interest in Renewable Energy Sector

The company's IPO comes at a time when India's renewable energy space is growing and attracting investments, encouraged by the government's ambitious target of net-zero carbon emissions by 2070. Over the past year, several companies in the renewable energy sector, such as ACME Solar Holdings and Vikram Solar, have filed for IPOs, reflecting the growing investor interest in this sector.

The approval of NTPC Green Energy's IPO by SEBI is a testament to the company's strong fundamentals and its potential for growth. The IPO is expected to attract significant interest from investors, given the company's robust portfolio, strong financial performance, and the growing focus on renewable energy in India. The company's planned roadshows in India and abroad, especially in Singapore, are expected to further boost investor interest in the IPO.