NTPC Green Energy, the renewable energy arm of the NTPCmobilized ₹3,960 crore from anchor investors on Monday, a day before its initial share-sale opening for public subscription.
New World Fund Inc, Goldman Sachs Funds, Government of Singapore, Life Insurance Corporation of India, ICICI Prudential Mutual Fund (MF), Nippon India MF, DSP MF and Kotak MF are among the anchor investors, according to a circular uploaded on the BSE’s website.
As per the circular, the company has allotted 36.66 crore equity shares to 107 funds at ₹108 apiece, which is also the upper end of the price band. This aggregates the transaction size to ₹3,960 crore.
The ₹10,000-crore initial share-sale is entirely a fresh issuance of equity shares with no offer-for-sale (OFS) component. The issue, with a price band of ₹102 to ₹108 per share, will be available for public subscription during November 19 to 22.
Proceeds from the IPO to the tune of ₹7,500 crore will be used to repay or prepaid part or all of its subsidiary NTPC Renewable Energy Ltd’s (NREL) outstanding loans and besides a portion will be utilized for general corporate purposes.
NTPC Green Energy is a ‘Maharatna’ central public sector enterprise with renewable energy portfolio, including solar and wind power assets, spread across more than six states.
As of August 2024, the company’s operational capacity comprised 3,071 MW from solar projects and 100 MW from wind projects, across six states.
Overall, the NTPC group aims to reach 60 GW of renewable energy capacity by 2032. Currently, it has 3.5 GW of installed capacity and over 28 GW in progress.
India’s renewable energy sector is growing rapidly. Globally, India is ranked fourth in renewable energy capacity, including wind and solar installations, the draft papers cited a Crisil report.
The country’s installed renewable energy capacity increased from 63 GW in fiscal 2012 to 123 GW in fiscal 2021, reaching about 191 GW by March 2024 (including large hydro). As of March 2024, renewable energy made up nearly 43 percent of India’s total power generation capacity, with solar energy leading this growth, it added.
IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities and Nuvama Wealth Management are the book running lead managers to the issue.