Fri Sep 20 10:53:17 UTC 2024: ## NTPC Green Energy to Raise Rs 10,000 Crore Through IPO

**New Delhi, September 19, 2024:** NTPC Green Energy, the renewable energy arm of state-owned power giant NTPC, is set to raise Rs 10,000 crore through an initial public offering (IPO). The IPO, which will be entirely a fresh issuance of equity shares, is expected to be launched by the end of the year.

According to the draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI), the proceeds from the IPO will be used to repay outstanding loans of subsidiary NTPC Renewable Energy Ltd (NREL) and for general corporate purposes.

The IPO comes at a time when the Indian IPO market is witnessing a surge in activity. With around 60 companies having launched their IPOs this year, the market is considered to be thriving.

**NTPC Green Energy: A Leader in Renewables**

NTPC Green Energy, a ‘Maharatna’ central public sector enterprise, has a significant portfolio of solar and wind power assets across six states. As of August 2024, the company had 3,071 MW of operational solar capacity and 100 MW of wind capacity.

The NTPC group is targeting a renewable energy capacity of 60 GW by 2032. Currently, it has 3.5 GW of installed renewable capacity and over 28 GW under construction.

**Growth of India’s Renewable Energy Sector**

India’s renewable energy sector is experiencing rapid growth, making the country the fourth largest in the world in terms of installed wind and solar capacity, according to a Crisil report cited in the DRHP. The country’s installed renewable energy capacity has increased from 63 GW in FY12 to 123 GW in FY21, reaching approximately 191 GW by March 2024 (including large hydro).

Renewable energy now accounts for nearly 43% of India’s total power generation capacity, with solar energy leading the charge.

**Expert Opinions**

Kranthi Bathini, director of equity strategy at WealthMills Securities, commented that the IPO comes at a crucial time for NTPC, which is actively diversifying its energy portfolio. “Considering the fact that green energy will remain in focus in the near-future, investors would definitely want a slice of this pie,” he added.

**Key Highlights of the NTPC Green Energy IPO:**

* IPO size: Rs 10,000 crore
* Entirely a fresh issuance of equity shares
* Proceeds to be used for debt repayment and general corporate purposes
* Expected listing by the end of 2024
* Shareholders quota for NTPC shareholders
* Book-running lead managers: IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management

The official dates for the IPO will be announced soon.

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