NTPC Green Energy Ltd., the renewable-energy arm of India’s state-owned NTPC Ltd., is preparing to raise up to 100 billion rupees ($1.2 billion) through its initial public offering (IPO). This move highlights the increasing scale of deals in the world’s most active IPO market. According to a draft prospectus released Wednesday, NTPC Green Energy intends to use the funds to invest in its subsidiary and settle outstanding loans, though a listing date has yet to be determined.
The Indian IPO landscape is buzzing with activity, with at least three additional companies—including SoftBank-backed Swiggy Ltd., as well as Indian branches of LG Electronics Inc. and Hyundai Motor Co.—eyeing IPOs worth over $1 billion in the near future. This follows a trend of strong market performance for newly listed companies; for instance, Bajaj Housing Finance Ltd.’s stock more than doubled upon its debut this week, following a $781 million IPO, which stands as India’s largest listing of the year so far.
Although most Indian IPOs have been under $50 million to date, the country has seen 90 IPOs this quarter alone, compared to 54 in the US, making India the most active IPO market globally, as per Bloomberg data. In terms of funds raised, however, India still trails behind the US and Hong Kong, which hosted the two largest global IPOs this year.
India’s IPO fervor has propelled its listing proceeds to $8.8 billion in 2024, surpassing the totals for the previous two years, according to Bloomberg. This surge is fueled by both domestic and international investors, reflecting confidence in India’s robust economic growth amidst challenges faced by other major economies like China.
NTPC Green Energy, which operates solar and wind power assets across more than six states, reported a net income of 1.4 billion rupees on revenue of 5.8 billion rupees for the quarter ending June this year, as stated in the draft prospectus.
The book-running lead managers for NTPC Green Energy’s IPO are IDBI Capital Markets & Securities Ltd., HDFC Bank Ltd., IIFL Securities Ltd., and Nuvama Wealth Management Ltd.
