NTPC Green Nears for an IPO: Know the Details
NTPC Green, the subsidiary of the leading electricity provider of India, National Thermal Power Corporation Ltd. is coming for a Rs.10,000 crores IPO.
NTPC Green has made significant steps recently for going public, by selecting 4 investment banks for its Rs.10,000 crore IPO, IDBI Capital Market and Securities, HDFC Bank, IIFL Securities and Nuvama Wealth Management have been shortlisted.
NTPC Green:
NTPC Green was established in April 2022 as a wholly owned subsidiary of NTPC, NTPC earlier planned to sell a 20% stake in NTPC Green to a strategic investor but the company later decided against the stake sale.
Use of IPO Proceeds
The IPO proceeds will be used to fund ongoing and future projects of the NTPC subsidiary across solar energy, green hydrogen and green ammonia. The CEO of NTPC Green Energy said that the company aims to go public with an IPO in FY25. The IPO proceeds are earmarked to finance both ongoing projects and future initiatives, ensuring sustained momentum in the company’s pursuit of clean energy solutions.
Public Sector IPOs
At Rs.10,000 crore, NTPC Green’s IPO will be the biggest initial share sale by a public sector company after the Rs.21,000 crore IPO of Life Insurance Corporation of India(LIC) in May 2022. The proposed NTPC Green IPO follows the Rs.2,150 crore share sale of the Indian Renewable Energy Development Agency (IREDA), a state-owned entity that finances renewable energy projects, in November 2023.
The IREDA offer was subscribed to around 38 Times. Thus this IPO is not only going to make significant milestones but has also brought in signals of a resurgence for public sector IPOs in India. After the successful performance of IREDA in November 2023, investor confidence in government-owned entities is at a high level.
Conclusion:
NTPC Green IPO with its good and substantial size and planned focus on the renewable energy sector can be attractive to investors and may set a new benchmark for government-owned entities IPOs.
The company is looking committed towards its renewable energy agenda and they can capitalise on this issue for further development in their strategic future goals and objectives.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
