NTPC Green Selects Four Investment Banks For Rs 10,000 Cr IPO

NTPC Green Energy has selected four investment banks to oversee its Rs 10,000 crore initial public offering, marking a significant milestone for state-owned entities since Life Insurance Corporation of India's share sale in 2022. According to sources familiar with the matter, IDBI Capital Markets and Securities, HDFC Bank, IIFL Securities and Nuvama Wealth Management have been chosen following a rigorous evaluation of financial and technical bids, with IDBI Capital presenting the most competitive bid. Despite attempts to reach out by a media house, responses from NTPC, IDBI Capital, Nuvama, IIFL and HDFC Bank were not forthcoming.

The funds raised through the IPO will fuel ongoing and prospective projects of NTPC Green, focusing on solar energy, green hydrogen and green ammonia ventures. NTPC Green, established in April 2022 as a wholly owned subsidiary of NTPC, aims to consolidate its parent company's renewable energy assets. Initially, NTPC contemplated selling a 20 per cent stake to a strategic investor, with Malaysian energy giant Petronas offering USD 460 million, but later shelved the plan.

In an interview with a media house, Mohit Bhargava, CEO of NTPC Green Energy, revealed plans to launch the IPO in FY25. Bhargava disclosed that the company is actively developing a pipeline of approximately 25-26 GW, with 8 GW currently under construction. Notably, NTPC Green inked a memorandum of understanding with the Maharashtra government to spearhead green hydrogen projects, including green ammonia and green methanol production, alongside pumped storage and renewable energy initiatives, potentially attracting an investment of around Rs 80,000 crore.

The NTPC Green IPO, valued at Rs 10,000 crore, represents the largest public sector IPO since the Rs 21,000 crore offering by Life Insurance Corporation in May 2022. This move follows the successful Rs 2,150 crore share sale of the Indian Renewable Energy Development Agency (IREDA) in November 2023, which garnered a subscription rate of 38.8 times.