NTPC Green Energy, the renewable energy subsidiary of NTPC, is expected to launch its initial public offering (IPO) in the first week of November, according to sources cited by CNBC-TV18. The company will be conducting roadshows in key financial hubs like Mumbai, London, the US, and Singapore to attract investors.
Last week, the company submitted its preliminary filing to SEBI, aiming to raise ₹10,000 crore through the IPO. The offering will consist solely of new equity shares, with no existing shareholder selling their stake. The company intends to use ₹7,500 crore of the funds raised to repay or prepay the outstanding loans of its subsidiary, NTPC Renewable Energy Ltd (NREL), with the remainder allocated for general corporate purposes. NTPC management anticipates that the listing will unlock significant value for the company.
In a previous interview with CNBC-TV18, Mohit Bhargava, CEO of the company, explained that the company requires substantial equity to support its growth. “We will need to raise equity either through internal accruals or by tapping the markets,” Bhargava said, underlining the necessity of the IPO.
NTPC Green Energy, a fully owned subsidiary of NTPC, is part of the company’s broader strategy to expand its renewable energy capacity to 60 gigawatts (GW) by FY32. The firm currently operates 3.5 GW of renewable energy capacity, with over 28 GW in the pipeline. IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management have been appointed as the lead managers for the IPO.
