New Delhi: NTPC Green Energy, a subsidiary of state-owned power producer NTPC, filed draft papers on Wednesday for an initial public offering (IPO) worth Rs100 billion ($1.19 billion) as it seeks to capitalize on India's renewable energy expansion and a booming stock market, Reuters reported.
According to the draft documents, the offering will consist entirely of new shares, with no existing shareholders selling their stakes, the report said.
India’s IPO market has been thriving, with approximately 235 companies going public this year, raising over $8.6 billion—already surpassing last year's total. The Nifty 50 index has hit record highs over 50 times in 2024.
Major Indian power producers are focusing heavily on renewable energy, aligning with the government's goal to add at least 500 GW of clean energy by 2030 to curb carbon emissions.
NTPC Green Energy plans to use the funds raised from the IPO to repay loans of Rs 75 billion borrowed by its unit, NTPC Renewable Energy.
As of the end of June, NTPC Green Energy’s total borrowings stood at Rs 152.77 billion.
The IPO’s book-running lead managers include IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management.
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