NTPC Green Energy IPO targets $12 billion valuation in one of India’s biggest renewable listings

NTPC Green Energy Limited is considering seeking a valuation of nearly $12 billion for its upcoming initial public offerings (IPO), potentially making it one of the biggest IPOs in the renewable energy industry, news agency Bloomberg reported on Tuesday, November 12, citing people aware of the development.

NTPC Green Energy Ltd is a subsidiary of the state-owned NTPC Limited. The clean energy company has held talks with its advisors regarding pricing its IPO at over ₹100 per share, according to the people cited in the report.

The renewable energy company may raise up to ₹100 billion or ₹10,000 crore via the share sale, the company had said earlier.

The books are expected to open on November 18 and close on November 21, said the people cited in the report. Considerations are ongoing and details such as valuation, price range and timing could still change, the report added. 

NTPC Green Energy representative did not immediately respond to the agency's queries on the development.

In Focus: Renewables Energy Sector 

NTPC Green Energy IPO comes after the listing of Waaree Energies IPO in the renewable energy sector. Waaree Energies raised $514 million from the public markets last month and was subscribed more than 70 times. The Waaree stake sale garnered interest from global investors like Goldman Sachs Group Inc., BlackRock Inc., Morgan Stanley and other small and wealthy investors. The company's shares rose 56 per cent in Dalal Street debut. 

Investors' interest in India's renewable energy sector is rising, which has been the focus of the government of India as well as Prime Minister Narendra Modi. India’s renewable-energy revolution has added more than 100 gigawatts in the last 10 years, exceeding earlier expectations, as per the agency report. 

Another renewable energy sector public issue, ACME Solar Holdings, is also aiming to raise $344 million from its issue; the company has already received strong demand from both the retail and qualified institutional investors segment. The company's shares are anticipated to list on bourses tomorrow.