About NTPC Green Energy
Incorporated in 2022, NTPC Green Energy is a wholly-owned subsidiary of NTPC Limited, a ‘Maharatna’ central public sector enterprise. Its renewable energy portfolio encompasses both solar and wind power assets with a presence across multiple locations in more than six states. Its operational capacity was 3,071 MW of solar projects and 100 MW of wind projects as of August 31, 2024. The company’s projects generate renewable power and feed that power into the grid, supplying a utility or off-taker with energy. For its operational projects, It has entered into long-term Power Purchase Agreements (PPAs) or Letters of Award (LoAs) with off-takers like government agencies and public utilities. The company aims to add around 60 GW of renewable capacity by 2032, nearly 15% of the country’s capacity.
Financials of NTPC Green Energy
Issue size
| Funds Raised in the IPO |
Amount |
| Overall |
₹10,000 crores |
| Fresh Issue |
₹10,000 crores |
| Offer for sale |
– |
Utilisation of proceeds
| Purpose |
INR crores (%) |
| Debt reduction of a wholly owned subsidiary, NTPC Renewable Energy |
7500 (75%) |
| General corporate purposes |
2500 (25%) |
Strengths
- The company is among the top 10 renewable energy players in India in terms of operational capacity as of June 30, 2024.
- It is promoted by NTPC Limited, which has extensive experience in executing large-scale projects, long-term relationships with off-takers and suppliers and financial strength.
- It has a Portfolio of 14,696 MWs of solar and wind projects as of June 30, 2024, with diversification across geographies and off-takers. As of June 30, 2024, the company had 15 off-takers across 37 solar projects and 9 wind projects.
- The company’s growing revenues along with strong credit ratings enable them to have a low cost of capital employed.
- It is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of June 30, 2024, and power generation in Fiscal 2024.
Risks
- The renewable energy project construction activities may be subject to cost overruns or delays which may adversely affect the business, results of operations, financial condition, and cash flows.
- The company’s operating renewable energy projects are concentrated in Rajasthan. Any significant social, political, economic, or seasonal disruption, natural calamities, or civil disruptions in Rajasthan could hurt the business.
- Any inability to collect receivables in time or at all from its utility off-takers may adversely affect the business, operations, and financial condition.
- The company has substantial capital expenditure requirements and may require additional financing to meet those requirements, which could adversely affect the financial condition.
- There is a concentrated pool of utilities and power purchasers for electricity generated by the company’s plants and projects with more than 87% of its revenue from operations from the top five off-takers in Fiscal 2024, with the single largest off-taker contributing around 50% of the revenue from operations in Fiscal 2024.
