The green energy arm of NTPC, a state-run company, files for a $1.2 billion India IPO
India's NTPC Green Energy filed a draft paper for a $100 billion rupee ($1,19 billion) initial IPO on Wednesday. The company is looking to capitalize on India's plans to expand its renewable energy sector and the booming equities markets.
Draft papers show that the company, a subsidiary of NTPC, a state-owned energy producer, will only sell new shares and will not allow existing shareholders to sell their stakes.
India's IPO market is booming. This year, 235 companies went public, raising more than $8.6 Billion, surpassing the amount raised in 2013.
This year, India's Nifty 50 benchmark index has reached record highs over 50 times.
The Indian government has set a goal to reduce carbon dioxide emissions by adding at least 500 GW clean energy capacity by 2030.
The IPO is coming at a moment when the thermal power-heavy NTPC looks for new energy avenues to diversify and bolster revenue," said Kranthi Bathini. Director of equity strategy, WealthMills Securities.
Bathini said that investors would want to get a piece of the pie, given the importance of green energy in the future.
Earlier this month, we reported on NTPC’s plans to make its green energy division public in FY24-25.
NTPC Green Energy announced on Wednesday that it would use the proceeds of the new issue to repay loans totaling 75 billion rupees, taken by NTPC Renewable Energy.
As of June 30, NTPC Green Energy had total borrowings of 152.77 Billion Rupees.
IDBI Capital Markets & Securities is the book running lead manager of the IPO. HDFC Bank, IIFL Securities, and Nuvama are also involved. ($1 = 83.6930 Indian rupees) (Reporting by Hritam Mukherjee in Bengaluru; Editing by Shinjini Ganguli)
(source: Reuters)
