NTPC Green Energy Files Rs. 10,000 Cr. IPO DRHP, Biggest PSU IPO since LIC
NTPC Green Energy Ltd. (NGEL), a wholly-ownd subsidiary of NTPC Ltd. dealing in Renewables, has filed its Draft Red Herring Prospectus (DHRP) with the Securities and Exchange Board of India (SEBI).
NTPC Plans Fresh Issue Valued Rs. 10,000 Cr., Biggest PSU IPO Since 2022
NTPC shared in a stock filing dated 19th September 2024 that its Renewable Energy business subsidiary, NTPC Green Energy has filed a DRHP with SEBI for a Rs. 10,000 crore IPO. This IPO will be the biggest issue by a Public Sector Undertaking (PSU) since Life Corporation of India’s Rs. 21,000 crore IPO in 2022.
As per media reports, NTPC Green Energy’s IPO is likely to be rolled out in Q3 of FY-25.
Proceeds to be Used for Debt Repayment & General Corporate Expenses
NTPC Green Energy’s DRHP mentions that the proceeds from its IPO will be utilised for repayment/ prepayment of debt, and for general corporate purposes. Out of the total proceeds, the company plans to use Rs. 7,500 crore for payment of debt. NTPC Green Energy will use Rs. 4,000 crore to pay its outstanding debts in FY-25, whereas the rest of Rs. 3,500 crore will be used to repay debts in FY-26. According to the company, NGEL has total outstanding borrowings amounting to Rs. 16,235.09 crore as on 31st July 2024.
As for the general corporate expenses, NGEL will not use more than 25% of the IPO’s net proceeds.
NTPC Green Energy’s Financial Numbers for Q1 FY-25 & FY-24
NGEL’s revenue from operations stood at Rs. 578.44 crore for Q1 of FY-25 with a Profit After Tax of Rs. 138.61 crore. For FY-24, NTPC Green Energy’s top line stood at Rs. 1,962.60 crore with a PAT of Rs. 344.72 crore.
Brief Glance at NTPC Green’s Portfolio
NTPC Green Energy was incorporated on 7th October 2022 as a dedicated Renewable Energy (RE) business subsidiary of NTPC.
As on 30th June 2024, the company’s 14,696 MW portfolio comprises 2,925 MW of operating projects. Out of the operating project capacity, 2,825 MW is from solar projects while 100 MW is from wind power projects. Other than the operating projects, NGEL’s portfolio has 11,771 MW of contracted projects spread out in 7 states, which include 9,771 MW of contracted solar projects and 2,000 MW of contracted wind power projects.
Apart from this, NGEL mentioned in its DRHP that their ‘capacity under pipeline’ is 10,975 MW as on 30th June 2024. This consists of projects for which definitive agreements have not been signed, but Memoranda of Understanding (MoUs) or term sheets have been signed.
The company has set a target to have 60 GW RE generation capacity by 2032.
NTPC Green Energy Signs JV Agreement to Develop 10 GW of RE Projects
In a stock filing dated 26th September 2024, NTPC shared that NGEL has entered into a joint venture (JV) agreement with Mahatma Phule Renewable Energy and Infrastructure Technology Ltd. (MAHAPREIT). “The JV Company will undertake development of 10 GW of Renewable Energy Parks and Projects in Maharashtra or in any other state of India”, as per the filing.
