Indian state-run energy company NTPC Ltd is preparing to raise approximately INR 100 billion (USD 1.2 billion) through the initial public offering (IPO) of its renewable energy arm, NTPC Green Energy. The move aims to strengthen the unit's operations and reduce its debt burden.
NTPC Green Energy has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for the proposed IPO. According to the filing, the IPO will consist solely of newly issued shares, with no offer-for-sale (OFS) component for existing shareholders.
The company plans to use part of the proceeds to repay the outstanding debt of its subsidiary, NTPC Renewable Energy. The remaining funds will address general corporate purposes.
Although the timeline for the offering has not been disclosed, NTPC Green Energy is focusing on investments in wind, solar, energy storage, and green hydrogen projects.
Established in 2022, the company consolidates NTPC's renewable energy assets and supports its goal of achieving 60 GW of renewable capacity by 2032. Currently, NTPC Green Energy operates more than 3.8 GW of installed capacity.
