NTPC Green’s Rs 10,000 crore IPO opens today

Rs 3,960 cr anchor quota:

The institution allotted shares worthy Rs 3,960 crore to anchor investors connected Monday astatine Rs 108 per share. Among those who received an allotment successful the anchor class were Goldman Sachs, Government of Singapore, Monetary Authority of Singapore, Life Insurance Corporation of India and ICICI Prudential.

IPO proceeds to spell to company:

NTPC Green Energy’s IPO volition beryllium wholly a caller contented of equity shares and determination volition beryllium nary Offer for Sale (OFS) by existing shareholders for the same. This means the full IPO proceeds volition spell to the company. This volition beryllium the 3rd largest IPO of the year, pursuing Hyundai Motor India’s Rs 27,870 crore contented and Swiggy’s Rs 11,300 crore IPO.

Parent NTPC Ltd’s stock terms is presently quoted astatine Rs 374.60 connected the exchanges.

Operations:

Incorporated connected April 7, 2022, the company’s genitor NTPC Ltd transferred its renewable vigor assets comprising of 15 solar/ upwind vigor units to NTPC Green connected February 28, 2023. Further, NTPC besides transferred its equity shareholding successful NTPC Renewable Energy Ltd to NTPC Green done a stock acquisition agreement.

NTPC Green’s operational capableness was 3,071 MW of star projects and 100 MW of upwind projects crossed six states arsenic of August 2024. “We are strategically focused connected processing a portfolio of utility-scale renewable vigor projects, arsenic good arsenic projects for nationalist assemblage undertakings and Indian corporates,” it said successful the Red Herring Prospectus (RHP).

“Our projects make renewable powerfulness and provender that powerfulness into the grid, supplying a inferior oregon offtaker with energy. For our operational projects, we person entered into semipermanent Power Purchase Agreements oregon Letters of Award with an offtaker that is either a Central authorities bureau similar the Solar Energy Corporation of India oregon a State authorities bureau oregon nationalist utility,” the RHP said.

Use of IPO proceeds:

The institution proposes to utilise the nett proceeds towards backing the pursuing objects: Investment successful wholly-owned Subsidiary, NTPC Renewable Energy Ltd (NREL) for repayment/ prepayment, successful afloat oregon successful portion of definite outstanding borrowings availed by NREL and wide firm purposes, the RHP said.

The institution intends to utilise a information of nett proceeds aggregating to Rs 7,500 crore successful the signifier of equity oregon indebtedness oregon a operation of some oregon successful immoderate different mode arsenic whitethorn beryllium decided by the committee for repayment and/ oregon prepayment, successful afloat oregon part, of definite borrowings availed by NREL from banks and fiscal institutions.

As connected July 31, 2024, the institution had outstanding borrowings of Rs 16,235 crore connected a consolidated basis.

Financial performance:

The institution reported a consolidated gross Rs 578.44 crore and a nett aft taxation of Rs 138.61 crore during the 3 months ended June 2024. Revenue for the fiscal ended March 2024 was Rs 1,962.59 crore and nett aft taxation astatine Rs 344.72 crore.