Here are the key highlights from the NTPC Green Energy IPO, as outlined in its Red Herring Prospectus (RHP) filed with SEBI.
The Rs 10,000-crore Initial Public Offering (IPO) of NTPC Green Energy Limited (NGEL), a fully owned subsidiary of NTPC, India’s largest power generation company, will provide a significant boost to the company’s goal of reaching 60 GW of renewable energy capacity by FY32.
To put it in perspective, 60 GW of power is enough to supply electricity to 45 million households. However, electricity generated from non-fossil fuel sources isn’t available consistently throughout the day due to the lack of large-scale energy storage solutions needed for these systems. NTPC aims to have 45% of its total power generation come from renewable sources by 2032.
A successful IPO for NTPC Green Energy Limited (NGEL) could attract additional investments into India’s renewable energy sector, which is critical as the country works towards its goal of adding 500 GW of renewable capacity by 2030 and achieving net-zero emissions by 2070. While India’s peak power demand reached 250 GW this year, only about 20% of this demand was met by renewable energy, according to the Ministry of Power.
The United Nations defines “net zero” as reducing carbon emissions to a minimal level, with any remaining emissions being offset by natural processes or technologies that can absorb and store carbon, effectively eliminating the presence of greenhouse gases in the atmosphere.
About NTPC Green Energy IPO
- The NTPC Green Energy IPO will open for subscription on November 19, with a price band of Rs 102-108 per share.
- The public issue is a fully fresh issue, with no offer-for-sale component, and will close on November 22.
- Institutional investors can participate in the anchor book, worth up to Rs 3,960 crore, on November 18.
- The company has reserved up to 75% of the net issue size (excluding the portion for employees and shareholders) for qualified institutional buyers (QIBs).
- The company has reserved 15% of the net issue for non-institutional investors (NIIs).
- 10% of the net issue is reserved for retail investors.
7. The company’s shares will begin trading on the BSE and National Stock Exchange starting
November 27.
NTPC has announced that NTPC Green Energy Limited (NGEL) will oversee all future renewable energy capacity additions within the NTPC group. The company has already commissioned 4 GW (4,013 MW) of renewable energy projects. It plans to add another 3 GW in the current fiscal year.
A company spokesperson said, “In FY26, we aim to add 5 GW of renewable energy capacity. The following year, we plan to add 8 GW.” By FY27, our total operational renewable energy capacity will reach 19.4 GW.
NGEL is currently working on the largest renewable energy project ever undertaken by a public sector entity. It is located in Khavda, Gujarat, in the Kutch district. This includes two solar projects with a combined capacity of 2.45 GW. In September, NGEL formed joint ventures with Rajasthan Rajya Vidyut Utpadan Nigam Limited and Mahatma Phule Renewable Energy and Infrastructure Technology Limited. The aim is to develop 25 GW of renewable energy in Rajasthan and 10 GW in Maharashtra.
Additionally, NGEL is developing a green hydrogen hub in Pudimadaka, Andhra Pradesh. The company is focusing on installing grid-scale battery storage systems. It is also working on 2 GW of round-the-clock renewable energy capacity. This includes one of the world’s largest 24/7 renewable energy projects at 1.3 GW. By 2030, NGEL plans to develop 18.9 GW of pumped storage power systems.
In its draft prospectus filed with the Securities and Exchange Board of India in September, NTPC Green Energy stated that it plans to use Rs 7,500 crore from the IPO funds to repay debt held by its subsidiary, NTPC Renewable Energy. The remaining funds will be used for general corporate purposes.
The IPO is an important part of NTPC’s plan to reach 60 GW of renewable energy capacity by FY32. Currently, the company has 24 GW of renewable energy projects in the works and is rapidly expanding in areas like solar power and green hydrogen.
NTPC, formerly known as National Thermal Power Corporation, has an installed capacity of over 76 GW, making it India’s largest integrated power company. The state-owned company aims to expand to 130 GW by 2032, with a diversified energy mix, and to generate 600 billion units of power annually.
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