NTPC Green Energy, a subsidiary of NTPC, has filed a draft red herring prospectus (DRHP) to raise ₹100 billion (~$1.19 billion) through an Initial Public Offering (IPO).

The IPO will comprise a fresh issue of up to 10,000 equity shares of face value of ₹10 (~$0.119), each aggregating up to ₹100 billion (~$1.19 billion). There is no offer for sale in this IPO.

The IPO will offer a quota for existing shareholders of NTPC with a maximum of 10% of the issue.

The net proceeds will be invested in NTPC Renewable Energy (NREL) to repay/prepay, in whole or in part, certain outstanding borrowings availed by NREL amounting to ₹75 billion (~$895.78 million). The remaining ₹25 billion (~$298.59 million) will be used for general corporate purposes, including funding of strategic initiatives, partnerships, joint ventures and acquisitions, capital expenditure, interest payment, and business development initiatives.

The company said NREL has entered into various borrowing arrangements, including term loans and various fund-based and non-fund-based working capital facilities. On July 31, 2024, it had outstanding borrowings of ₹162.35 billion (~$1.93 billion).

The company has solar and wind power projects in more than six states in India, with an operational capacity of 3,071 MW for solar and 100 MW for wind projects as of August 31, 2024.

In the first quarter of the financial year 2025, NTPC Green earned ₹5.58 billion (~$66.64 million) from renewable energy sales, with ₹5.3 billion (~$63.30 million) from solar and ₹279.62 million (~$3.30 million) from wind.

Last month, NTPC Green Energy floated a tender to sell 100,000 carbon credits for Verified Carbon Standard-registered wind and solar projects with a 610 MW capacity.

Recently, Suzlon Group secured a 1,166 MW order from NTPC Green Energy to install 370 wind turbine generators of the S144 model, each with a rated capacity of 3.15 MW.