On November 13, 2024, India announced the ₹10,000-crore initial public offering (IPO) of NTPC Green Energy Limited (NGEL), set to open for subscription on November 19, 2024, with a price band of ₹102-108 per share.
The IPO consists solely of a fresh issue, with no offer-for-sale component, and will close on November 22. Institutional investors can participate in the anchor book, amounting to ₹3,960 crore, on November 18.
The allocation of shares includes 75% reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 10% for retail investors. Trading on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) will commence on November 27, 2024.
NGEL plans to utilize ₹7,500 crore from the IPO proceeds to repay debts of its subsidiary, NTPC Renewable Energy, with the remainder allocated for general corporate purposes. This move supports NGEL's goal of achieving 60 GW of renewable energy capacity, up from its current 24 GW.
NTPC aims for 45% of its total power generation to derive from renewable sources by 2032, aligning with India's target of adding 500 GW of renewable power by 2030 and achieving net zero emissions by 2070. Currently, renewable sources account for approximately 20% of India's power generation.
NGEL has commissioned 4 GW of renewable projects and plans to add another 3 GW this year. The company is also working on the largest renewable energy project by a public sector undertaking in Khavda, Gujarat, comprising two solar projects totaling 2.45 GW.
In September, NGEL entered a joint venture for developing 25 GW and 10 GW renewable energy projects in Rajasthan and Maharashtra, respectively, and is establishing a green hydrogen hub in Pudimadaka, Andhra Pradesh.