NTPC Green Energy Set to Launch Rs 10,000 Crore IPO
NTPC Green Energy, a subsidiary of NTPC Limited, is gearing up to launch an Initial Public Offering (IPO) worth Rs 10,000 crore in the first week of November 2024. This move has been reported by CNBC TV18, citing knowledgeable sources. Prior to the public issue, the company plans to conduct a series of roadshows in key financial centers such as Mumbai, London, America, and Singapore, aimed at attracting potential investors.
Key Details of the IPO
As per the information provided, this forthcoming IPO is expected to be one of the largest public offerings in India for the year 2024. The public issue will comprise fresh equity shares, with no shares being offered for sale by the promoter entities. In an effort to benefit existing NTPC shareholders, a reserved quota will be set aside based on the date of the Draft Red Herring Prospectus (DRHP) submission. This reserved quota has been capped at 10% of the total issue size.
Objectives of the IPO
The primary goal behind NTPC Green Energy’s IPO is to significantly contribute to NTPC’s ambitious target of achieving 60 gigawatts (GW) of renewable energy capacity by the fiscal year 2032. Currently, the company has 24 GW of renewable energy capacity in its pipeline and is making substantial strides in areas like solar energy and green hydrogen production.
Market Outlook and Stock Performance
The robust growth trajectory of NTPC Green Energy has sparked increased investor enthusiasm for NTPC Limited’s stock overall. Notably, the international brokerage firm Jefferies has issued a ‘buy’ recommendation for NTPC shares, assigning a target price of Rs 485 per share. The firm has highlighted a significant uptick in renewable energy bids, which reached an impressive range of 37-39 MW in FY 2024, reflecting the company’s expanding presence in the green energy space.
Potential Impact on NTPC Limited
Experts predict that the listing of NTPC Green Energy could positively influence NTPC Limited, potentially leading to a re-rating of its stock. The funds raised through the IPO are expected to be channeled into financing both ongoing and upcoming projects. This investment strategy includes ventures in solar power, green hydrogen, and the development of green ammonia, further solidifying NTPC’s position as a leader in the renewable energy sector.
Summary of the Upcoming IPO
| Details | Information |
|---|---|
| IPO Size | Rs 10,000 crore |
| Expected Launch Date | First week of November 2024 |
| Equity Shares Type | Fresh equity shares only |
| Promoter Sale | No offer for sale |
| Reserved Quota for NTPC Shareholders | 10% of total issue |
| Renewable Energy Goal by FY 2032 | 60 GW |
| Current Pipeline Capacity | 24 GW |
In summary, NTPC Green Energy’s IPO represents a pivotal step for both the company and its parent organization, NTPC Limited, as they strive toward greater sustainability and expansion in the competitive renewable energy market.
