NTPC Green Energy Ltd. (NGEL) is preparing to unveil its eagerly awaited initial public offering (IPO) on November 19, with a goal of raising close to Rs 10,000 crore. This positions NGEL’s offering as the second-largest IPO in the public sector in India, trailing only the record-setting debut of Life Insurance Corporation (LIC) last year.
The IPO underscores NTPC’s determined effort to broaden its renewable energy portfolio, representing a significant step in India’s shift towards greener energy sources.
The offering will be available for subscription until November 22, with a price range established between Rs 102 and Rs 108 per share.
Allocation of shares and intended use of funds
The IPO will allocate 75 percent of shares to institutional investors, 15 percent to non-institutional investors, and 10 percent to retail investors. Qualified employees can benefit from a Rs 5 discount per share, with Rs 200 crore reserved for the employee allocation. Furthermore, Rs 1,000 crore has been designated for current NTPC shareholders.
The Rs 7,500 crore raised from the IPO will be used to support NTPC Renewable Energy Ltd. (NREL) for settling certain outstanding debts and for general corporate purposes.
As of September 2024, NTPC Green Energy stands as the largest public sector entity focused on renewable energy (excluding hydro power) in India. The company’s portfolio comprises 3,220 megawatts (MW) of solar installations and 100 MW of wind projects spread across six states. It has over 13500 MW of contracted projects in the pipeline and an additional 9,175 MW under development.
The company intends to elevate its renewable energy capacity to 60 GW by FY32, with more than 28 GW currently in progress. This IPO is expected to be the third largest this year, following Hyundai Motor India’s Rs 27,870 crore and Swiggy’s Rs 11,300 crore offerings.
