NTPC Green Energy aims for Rs 10,000 crore IPO splash; here's what brokerages say

NTPC Green Energy Ltd. (NGEL) is set to launch its highly anticipated initial public offering (IPO) on November 19, aiming to raise nearly Rs 10,000 crore. This makes NGEL’s offering the second-largest public sector IPO in India, following Life Insurance Corporation's (LIC) record-breaking debut last year.

The IPO highlights NTPC’s aggressive push towards expanding its renewable energy portfolio, marking a key milestone in India's transition to green energy.

The issue will remain open for subscription until November 22, with a price band set between Rs 102 and Rs 108 per share.

IPO allocation and use of proceeds

The IPO will reserve 75 per cent of shares for institutional investors, 15 per cent for non-institutional investors, and 10 per cent for retail investors. Eligible employees can avail a Rs 5 discount per share, with Rs 200 crore allocated under the employee quota. An additional Rs 1,000 crore is set aside for existing NTPC shareholders.

Proceeds of Rs 7,500 crore from the IPO will be utilized to invest in NTPC Renewable Energy Ltd. (NREL) for repayment of certain outstanding borrowings and for general corporate purposes.

Company outlook: Strong growth plans in renewable energy

NTPC Green Energy is the largest renewable energy public sector enterprise (excluding hydro) in India as of September 2024. The company’s portfolio includes three thousand two hundred and twenty megawatts (MW) of solar projects and one hundred MW of wind projects across six states. It has a pipeline of over 13500 MW of contracted projects and another nine thousand one hundred and seventy-five MW under development.

The company aims to scale its renewable energy capacity to sixty GW by FY32, with more than twenty-eight GW currently under development. This IPO is set to be the third largest of the year, following Hyundai Motor India's Rs 27,870 crore and Swiggy's Rs 11,300 crore issues.