NTPC Green Energy Limited (NGEL), a subsidiary of NTPC Limited, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) today for its Initial Public Offering (IPO) worth up to ₹10,000 crore. The public issue will consist of a fresh equity offering, and the funds raised will be used to fuel NGEL’s renewable energy expansion plans.
NGEL, incorporated in 2022, focuses on accelerating India’s transition to clean energy. The company’s parent organization, NTPC Limited, is India’s largest power producer and has committed to reducing its carbon footprint through substantial investments in renewable energy projects.
Key IPO Details
The IPO size is set at ₹10,000 crore, all of which will be raised through a fresh issue of equity shares. The face value of each equity share will be ₹10. There will also be a 10% retail portion reserved for individual investors, along with a shareholders’ quota for NTPC Limited shareholders. The eligibility date for NTPC shareholders to participate in the shareholder quota will be the date of filing of the Red Herring Prospectus (RHP).
| Details | Amount/Information |
|---|---|
| Total IPO Size | ₹10,000 crore (Fresh Issue) |
| Face Value of Each Equity Share | ₹10 |
| Retail Portion | 10% |
| Shareholders Quota | Yes |
| Parent Company | NTPC Limited |
| Shareholders Eligibility Date | Date of filing RHP |
| Listing Exchanges | BSE and NSE |
| IPO Lead Managers | IDBI Capital, HDFC Bank, IIFL Securities, Nuvama Wealth Management |
| Expected Contribution to India’s Renewable Energy Capacity by 2030 | 500 GW (non-fossil fuel energy capacity) |
IPO Management
The Book Running Lead Managers (BRLMs) for the issue include IDBI Capital Markets, HDFC Bank, IIFL Securities, and Nuvama Wealth Management. KFin Technologies Limited has been appointed as the registrar for the issue. The shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Risks and Investor Guidance
As it is the company’s first public issue, NTPC Green Energy has cautioned potential investors about the risks associated with equity investments, especially given the lack of a prior formal market for the company’s shares. However, the company’s focus on renewable energy is expected to attract significant interest, especially with India’s push towards green energy and sustainability.
The pricing details, including the floor price and cap price, will be announced closer to the bidding period. The final price band and the employee discount (if applicable) will also be disclosed at that time.
NTPC Green Energy’s IPO is expected to play a crucial role in India’s renewable energy landscape, further strengthening the government’s goal of achieving 500 GW of non-fossil fuel energy capacity by 2030.
