NTPC Green Energy IPO: DRHP Filed with SEBI

NTPC Green Energy Limited submits DRHP with SEBI and will be coming up with its public issue in the upcoming time; the public issue will be offering a 100% book-built offer. This upcoming IPO is offering an entirely new issue worth up to Rs 10,000 crore of equity shares; there is no offer for sale offered by the promoters. The face value mentioned by the company is Rs 10 each. The total aggregate issued shares has not been disclosed yet. This new IPO issue is being made through the book-building process with a reservation of less than 75% of the new offer reserved for Qualified Institutional Investors, not more than 15% reserved for NII and not more than 10% reserved for Retail Individuals. The opening and closing dates of this IPO have not yet been disclosed, and the company will announce the price band soon.

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About NTPC Green Energy Limited

NTPC Green Energy Limited was incorporated on April 7 2022, when the renewable energy business of NTPC Limited was restructured. In July 2022, NTPC executed a business transfer and share purchase agreement under which it transferred its renewable energy assets and 100% equity of NTPC Renewable Energy Limited (NREL) to the company. These transfers were completed by February 2023, and NTPC Green Energy Limited started its operations.

The company is a wholly-owned subsidiary of NTPC Limited and has a substantial renewable energy portfolio, including 3,071 MW of solar projects and 100 MW of wind projects. The company's main concentration is on utility scale renewable energy projects, and they have signed long term power purchase agreements with government agencies.

NTPC Green Energy Limited IPO Objectives

The Net Proceeds from the Fresh Issue are proposed to be utilized for Repayment/ prepayment, in full or in part of certain outstanding borrowings availed by our Subsidiary, NTPC Renewable Energy Limited, and general corporate purposes.

Financials of the Company

For the period ending March 31, 2024, the company experienced mixed financial performance. Total assets grew by 5.8%, increasing from Rs 2,720.6 crore in FY 2023 to Rs 2,877.5 crore in FY 2024. However, revenue saw a significant decline of (70.5%), dropping from Rs 196.3 crore in FY 2023 to Rs 57.8 crore in FY 2024. Similarly, profit after tax decreased by (59.8%), falling from Rs 34.5 crore in FY 2023 to Rs 13.9 crore in FY 2024. On the other hand, total borrowings increased by 19.4%, rising from Rs 1,279.7 crore in FY 2023 to Rs 1,527.7 crore in FY 2024. While the company-maintained asset growth, the sharp declines in revenue and profit, along with the increase in borrowing, suggest a need for a strategic focus on revenue recovery and debt management.

Lead manager(s), Registrar of IPO & Promoter(s) of the Company

The IPO is managed by IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Securities Limited and Nuvama Wealth Management Limited, which are the book-running lead managers of this public issue. The company has appointed KFin Technologies Limited as the registrar for this public issue. The promoter(s) of the company are PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF POWER, GOVERNMENT OF INDIA AND NTPC

LIMITED (As per DRHP, filed by the company for the SEBI).

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