Green Energy Division of NTPC, a state-owned company,

India’s NTPC Green Energy filed a draft document Wednesday for a 100 billion rupee ($1.19 billion) initial public offering, as the company seeks to capitalize on India’s plans to expand its renewable energy sector and a boom in stock markets.

Project documents show that the company, a subsidiary of state-owned power producer NTPC, will only sell new shares and will not allow existing shareholders to sell their stakes.

The Indian IPO market is booming, with 235 companies going public this year, raising over $8.6 billion, surpassing the amount raised in 2013.

India’s Nifty 50 stock index has hit record highs more than 50 times this year.

The Indian government has set a target to reduce carbon dioxide emissions by creating at least 500 GW of clean generating capacity by 2030.

The IPO comes at a time when NTPC, a major thermal power company, is looking at new energy avenues to diversify and grow its revenues,” said Kranthi Bathini, Head, Equity Strategy, WealthMills Securities.

Bathini said investors will want a piece of the pie, given the importance of green energy in the future.

Earlier this month, we reported on NTPC’s plans to list its green energy division in fiscal 2024-25.

NTPC Green Energy on Wednesday announced that it will use the proceeds from the fresh issue to repay loans taken by NTPC Renewable Energy totalling Rs 75 billion.

As of June 30, NTPC Green Energy had total debt of Rs 152.77 billion.

IDBI Capital Markets & Securities is the lead bookrunner for 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)