by Suman Gupta
Mumbai, November , 2024: NTPC Green Energy Limited, a wholly owned subsidiary of NTPC Limited, a ‘Maharatna’ central public sector enterprise, has fixed the price band of ₹102/- to ₹108/- per Equity Share of face value ₹10/- each for its maiden initial public offer.
The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Tuesday, November 19, 2024, for subscription and close on Friday, November 22, 2024. Investors can bid for a minimum of 138 Equity Shares and in multiples of 138 Equity Shares thereafter.
The IPO is entirely a fresh issue of up to Rs 10,000 crore with no offer for sale component. The company has reserved Rs 200 crore worth of shares for its employees. The eligible employees will get these shares at a discount of Rs 5 per share to the final issue price. Further, Rs 1,000 crore worth of shares are reserved for shareholders.
The proceeds from its fresh issuance will be utilized to the extent of Rs 7500 crore for investment in its wholly owned Subsidiary, NTPC Renewable Energy Limited (NREL) for repayment/ prepayment, in full or in part of certain outstanding borrowings availed by NREL and general corporate purposes.
NTPC Green Energy is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of September 30, 2024 and power generation in Fiscal 2024, according to a CRISIL Report, November 2024. Its renewable energy portfolio encompasses both solar and wind power assets with presence across multiple locations in more than six states which helps mitigate the risk of location-specific generation variability. Its operational capacity was 3,220 MW of solar projects and 100 MW of wind projects across six (6) states as of September 30, 2024.
As of September 30, 2024, its “Portfolio” consisted of 16,896 MWs including 3,320 MWs of operating projects and 13,576 MWs of contracted and awarded projects. Its Capacity under Pipeline together with its Portfolio consisted of 26,071 MWs. It had 17 offtakers across 41 solar projects and 11 wind projects.
NTPC Green Energy’s revenue from operations has grown at a CAGR of 46.82% from ₹910.42 crore in Fiscal 2022 (on a special purpose carved-out basis) to ₹1,962.60 crore in Fiscal 2024 (on a restated basis). Its Operating EBITDA has grown at a CAGR of 48.23% from ₹794.89 crore in Fiscal 2022 (on a special purpose carved-out basis) to ₹1,746.47 crore in Fiscal 2024 (on a restated basis). Its Profit After Tax has grown at a CAGR of 90.75 % from ₹94.74 crore in Fiscal 2022 (on a special purpose carved-out basis) to ₹344.72 crore in Fiscal 2024 (on a restated basis).
For the six months ended September 30,2024, revenue from operations stood at Rs 1082 crore and profit after tax stood at Rs 175.30 crore.
The Issue is being made through the book-building process, wherein at least 75% of the net issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the net issue shall be available for allocation to non-institutional investors, and not more than 10% of the net issue shall be available for allocation to retail individual investors.
IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Capital Services Limited, and Nuvama Wealth Management Limited are the book-running lead managers and KFin Technologies Limited is the registrar of the offer.
