MUMBAI: NTPC Green Energy is set to begin the last leg of the largest sectoral initial share with a Rs 11,000-crore issue on Wednesday, announcing the price range, reportedly seeking a valuation of $12 billion.
The clean energy subsidiary of state-run NTPC is seeking a valuation of about $12 billion in what could be the biggest initial public offerings in the renewable energy industry, people familiar with the matter said. Issue will open on November 18, and the company said it will announce the price range on Wednesday.
The NTPC Green issue follows the successful listing of Waaree Energies, which raised $514 million last month and was subscribed more than 70 times with the company getting investors from the likes of Goldman Sachs, Blackrock and Morgan Stanley apart from retail and wealthy investors.
Investor interest has been surging in the renewable-energy sector, given the huge government focus. Renewables has added more than 100 gigawatts in the last decade, outpacing earlier expectations and the target to have 500 gw or 50% of the energy needed being sourced from the green resources by 2030.
ACME Solar Holdings, is also planning a $344 million (R2,900 crore) issue and has received strong demand from both retail and qualified institutional investors. The issue from the NTPC arm will take the IPO issuances to a life-time record of well over Rs 1.2 lakh crore that was achieved in 2021. In 2021, the companies collectively raised R1.19 lakh crore and excluding the NTPC’s Rs 11,000 crore and ACME’s Rs 2,900 crore will take the numbers much higher.