NGEL has filed its DRHP with India’s SEBI as it targets a raise of INR 100 billion via IPO
The proceeds will be spent on repaying loans of its wholly-owned subsidiary NTPC REL
It will also invest in deploying funds for strategic initiatives and partnerships
A subsidiary of India’s state-owned utility NTPC Limited, NTPC Green Energy Limited (NGEL), is eyeing the public market to raise INR 100 billion ($1.2 billion), having filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
The initial public offering (IPO) will comprise only a fresh issue of up to 10,000 equity shares for a face value of INR 10/share. It plans to use INR 75 billion of the targeted proceeds to invest in its wholly-owned subsidiary NTPC Renewable Energy Limited (NREL) to repay/prepay some of its outstanding borrowings, and the remaining for general corporate purposes.
The remaining amount will be deployed to fund growth opportunities including strategic initiatives, partnerships, joint ventures and acquisitions, capital expenditure, interest payment, and business development initiatives, among other purposes, reads NGEL’s DRHP.
As the green energy arm of NTPC, NGEL had a combined 14.69 GW renewable energy portfolio, including 2.925 GW of operational and 11.77 GW of contracted and awarded capacity as of June 30, 2024. Its solar capacity pipeline was 7.72 GW. The company also had 15 offtakers across 37 solar projects and 9 wind energy projects as of the reporting date.
NGEL’s parent NTPC is India’s largest integrated power company with a total installed capacity of over 76 GW, and targets to achieve 130 GW by 2032 with coal being predominant in the mix. Solar will account for 30 GW or 23.2% of the share.
With the government’s focus on boosting both the demand and supply of solar PV across the supply chain, the Indian solar energy market is expected to grow strongly. Confident of continued regulatory support, several companies in India are going the IPO way to raise money (see Indian Solar PV Manufacturer Looking To Raise Funds Via IPO).