This photo, taken on April 6, 2022, shows a panoramic view of the National Thermal Power Corporation (NTPC) power plant in Dadri. The jet-black piles of coal at the Dadri power plant gleam in the afternoon sun, a raw example of India’s dependence on coal – a dependence the country has struggled to shake off despite mounting pressure.
Prakash Singh | AFP | Getty Images
India’s NTPC Green Energy Corp filed draft documents for a 100 billion rupee ($1.19 billion) initial public offering on Wednesday, hoping to cash in on the country’s renewable energy expansion plans and a red-hot stock market.
The company is a state-owned power generation unit State Power CorporationThe draft document shows that only new shares will be issued and existing shareholders will not sell any shares.
India’s IPO market is booming. So far this year, about 235 companies have gone public, raising more than $8.6 billion, exceeding last year’s total.
India’s Benchmark Nifty 50 Index This year has hit record highs more than 50 times.
India’s major power producers are Bet big The Indian government aims to add at least 500 gigawatts of clean energy by 2030 to reduce carbon emissions.
“The IPO comes at a time when thermal power-focused NTPC is looking at other energy avenues to diversify and grow revenue,” said Kranthi Bathini, director, equity strategy, WealthMills Securities.
“Given that green energy will remain in the spotlight in the near future, investors will certainly want a piece of the pie,” added Bartini.
Earlier this year, Reuters reported that NTPC planned to list its green energy unit in the financial year 2024-25.
NTPC Green Energy on Wednesday said it will use the proceeds from the new issue to repay loans worth Rs 7,500 crore taken by its subsidiary NTPC Renewable Energy.
As of end-June, NTPC Green Energy had total borrowings of Rs 15,277 crore.
The bookkeeping lead managers for the IPO include IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities and Nuvama Wealth Management.
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