New Delhi: NTPC Green Energy, NTPC’s renewable energy subsidiary, is anticipated to initiate its initial public offering (IPO) in the first week of November this year.
The firm intends to hold roadshows in several cities within India and internationally, including Mumbai, London, the US, Singapore, and other areas, to garner investment.
Recently, the company submitted preliminary documents with the capital markets regulator SEBI to secure ₹10,000 crore via an IPO.
The share sale will be composed solely of a new issuance of equity shares, without an offer-for-sale (OFS) component.
The company intends to allocate ₹7,500 crore from the proceeds to settle or prepay in part or full the outstanding debts of its subsidiary, NTPC Renewable Energy Ltd (NREL). The surplus funds will be directed towards general corporate objectives.
NTPC management is targeting substantial value realization from the public listing of NTPC Green Energy, as sources disclosed to CNBC-TV18 in a previous report.
Earlier this year, in a discussion with CNBC-TV18, Mohit Bhargava, CEO of NTPC Green Energy, mentioned that the main motivation for contemplating an IPO is the considerable demand for equity within the firm.
“There is a necessity to procure equity either via internal accruals or market sources. Hence, we anticipate the need to approach the market eventually.”
NTPC is on a mission to reach 60 gigawatts (GW) of renewable energy (RE) capacity by FY32. Presently, it boasts an installed capacity of 3.5 GW and is progressing with over 28 GW in the pipeline.
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