NTPC Green Energy IPO: India’s Green Energy Revolution (₹10,000 Crore)
NTPC Green Energy IPO, a subsidiary of the state-owned NTPC, is set to launch an IPO to raise ₹10,000 crore. The funds will be used to repay debt and expand its renewable energy portfolio. India’s renewable energy sector is booming, and NTPC Green Energy is poised to capitalize on this growth.
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NTPC Green Energy IPO
NTPC Green Energy files IPO draft for ₹10,000 crore.
Shares of NTPC, the state-run power generation company, soared to a record ₹431.85 on the BSE on Thursday, September 19. This surge followed the announcement that NTPC Green Energy, its renewable energy division, has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise ₹10,000 crore through an initial public offering (IPO).
In early trading, the stock rose by 4.34% to reach this new peak.
The draft red herring prospectus (DRHP) reveals that the IPO will consist entirely of a fresh issue of equity shares, with no offer for sale (OFS) component. The funds raised will be used primarily to repay ₹7,500 crore of debt from NTPC Renewable Energy (NREL), with the remainder allocated for general corporate purposes.
India’s renewable capacity rose from 63 GW to 191 GW by March 2024.
NTPC Green Energy IPO a ‘Maharatna’ central public sector enterprise, boasts a substantial renewable energy portfolio with wind and solar power assets across more than six states.
According to the IPO documents, referencing a Crisil report, India is a significant player in the global renewable energy sector, holding the fourth position worldwide for renewable energy capacity.
India’s installed renewable capacity increased from 63 GW in FY21 to 123 GW in FY22, and further rose to 191 GW, including large hydro, by March 2024.
NTPC’s net profit rose 12% to ₹5,506 crore in Q1 FY25.
The state-owned NTPC reported a 12% increase in consolidated net profit to ₹5,506.07 crore for the June quarter, driven by higher income.
In the same quarter last year, the net profit was ₹4,907.13 crore. Total income for the quarter rose to ₹48,981.68 crore, up from ₹43,390.02 crore a year earlier. Expenses increased to ₹41,844.18 crore from ₹36,963.61 crore.
NTPC’s consolidated power generation grew to 114 billion units (BUs) in Q1 FY25, compared to 104 billion units in Q1 FY24.
On a standalone basis, the company reported a net profit of ₹4,511 crore, marking an approximate 11% rise from ₹4,066 crore in the previous year.
NTPC shares up 78% in a year.
Over the past year, the company’s shares have increased by 78%, and over the past five years, they have surged by 259%.
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