MUMBAI: NTPC Green Energy, the 100 percent renewables subsidiary of the nation’s largest power producer NTPC, has fixed the price-band for its Rs 10,000-crore initial public offering opening next Tuesday at Rs 102-108.
The IPO, the largest in the renewables space till date and the second from the NTPC stable after its parent’s IPO in 2004, is a fresh issue and comprises Rs 8,800 crore in net issue, Rs 1000 crore worth of shares reserved for the shareholders of NTPC and Rs 200 crore worth of equity reserved for its employees. Both these categories will get 5 percent discount on the declared price band, Gurdeep Singh, the chairman and managing director of both companies, told reporters here Wednesday.
The proceeds from its fresh issuance will be utilized to the extent of Rs 7500 crore for investment in its wholly owned subsidiary NTPC Renewable Energy Limited (NREL) for repayment/prepayment in full or in part of certain outstanding borrowings availed by NREL and general corporate purposes, said the largest renewable energy player in the public sector enterprise (excluding hydro), with 3.3 gw of operational capacity.
The company has set an ambitious target of having 60 gw of operational capacity by 2032. Of this, it plans to commission 6 gw by March 2025, 9.2 gw by FY26 and 19 gw by Fy27, Rajiv Gupta, the chief executive of NTPC Green Energy, said, adding that by FY27 the idea is to have 10 percent or 2 gw in winds and 90 percent or 17 gw in solar. Currently, of the 3.3 gw, wind is only 100 mw.
Singh said the company is keen to be in the green hydrogen and ammonia space as well as in the pumped storage space along with battery storage going forward. While it has acquired 1200 acres in Andhra for a green hydrogen project, it also has tie-ups for pumped storage units in Maharashtra, Andhra, MP, Chhattisgarh, Tamil Nadu and Odisha.
As of September 2024, the company’s portfolio consists of 16,896 mw, including 3,320 mw of operating projects and 13,576 mw of contracted/awarded projects, taking its overall capacity in the pipeline to 26,071 mw. It had 17 offtakers across 41 solar projects and 11 wind projects.
Its revenue grew at an annual rate of 46.82 percent from Rs 910.42 crore in fiscal 2022 to Rs 1,962.60 crore in fiscal 2024 from which it earned Rs 94.74 crore in fiscal 2022 and Rs 344.72 crore in fiscal 2024, a growth of over 90 percent. For the six months to September 2024, revenue stood at Rs 1,082 crore and net profit at Rs 175.30 crore, said Jaikumar Srinivasan, director finance, NTPC & NTPC Green.
