NTPC Green Energy prepares for landmark IPO to fund ambitious 60 GW renewable vision

IPO-bound NTPC Green Energy is aiming to invest up to Rs 1 lakh crore in solar and wind assets by FY27.

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26 Aug, 2025 12:21

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NTPC Green Energy, the renewable energy arm of NTPC Limited, is gearing up for its much-anticipated Rs 10,000 crore initial public offering (IPO). The IPO, set to open on November 19, 2024, marks a significant milestone in India’s clean energy transition, aligning with the country’s ambitious renewable energy targets. The company aims to raise Rs 10,000 crore through fresh issue, making it the third largest public offerings this year after Hyundai Motor India & Swiggy. Here's a closer look at the company’s plans, strategies, and ambitious expansion plans, as shared by its top management in an exclusive interaction with Moneycontrol.

Managing debt
NTPC Green Energy plans to utilise 75% of the IPO proceeds for debt repayment, significantly reducing its debt. Jaikumar Srinivasan, Director of Finance at NGEL, stated: “As on September-end, we had a debt of Rs 17,000 crore. With this equity infusion, the debt will come down to Rs 9,700 crore. It will progressively go up as we ramp up our capacity additions and raise fresh debts. However, with massive capacity additions on the horizon, the company plans to take on new debt gradually. However, we are confident of managing our debt-to-equity ratio effectively at 4:1, while ensuring competitive capital-raising costs due to our strong domestic and international ratings.”

Roadmap to 2032
NGEL is on a mission to scale its renewable energy capacity to 60 GW (60,000 MW) by 2032. Speaking on the timeline, Gurdeep Singh, Chairman and Managing Director of NGEL, noted, “By March 2027, we aim to reach 19,000 MW, up from our current capacity of 6,000 MW. This growth trajectory aligns with our long-term vision for clean energy leadership.”

The company is focusing on large-scale renewable energy parks, such as the 5,000 MW solar and wind project in Khavda, Gujarat, and similar ventures in Rajasthan and Maharashtra. These initiatives will leverage joint ventures with state governments to ensure smooth land acquisition and cost-effective operations.

Also read: NTPC Green Energy IPO offers a valuable lesson for PSUs in value creation

Green Hydrogen and Energy Storage
While NGEL’s immediate focus is solar and wind power, the company is actively exploring green hydrogen and energy storage solutions. It has plans for a green hydrogen hub in Pudimadakka, Andhra Pradesh, which is currently in the preparatory phase. Srinivasan remarked, “The green hydrogen project will require separate equity funding in the coming years. However, we are already witnessing sharp corrections in battery prices, and have begun the bidding process for 1,500 MW of storage capacity.”

This strategic diversification underscores NGEL’s commitment to round-the-clock renewable power and next-generation energy solutions.

Edge Over Competitors
NGEL’s scale and funding capabilities set it apart from competitors like Adani Green and Renew Power. According to Singh, “Our cost of funding is far more competitive due to our strong credit rating, which allows us to raise capital at better rates. Additionally, our large-scale renewable parks and joint ventures with state governments provide us a unique operational advantage. All these factors will ultimately help us attain higher margins”.

Speaking on the revenue potential, Srinivasan further added, "We have a commissioning plan of 3 GW for the current year, followed by 5 GW in the next year, and 8 GW in FY2027. This robust pipeline ensures a steady stream of profitability for the company, with a healthy PAT margin of approximately 17%. These additions will not only enhance our cash flows significantly but also bring economies of scale. Greater capacity additions will lead to optimised costs, driving further improvement in the company’s financial health and operational efficiency."

Risks in Execution and Supply Chains
The company’s holistic approach—spanning design, construction, and commissioning—ensures timely execution and mitigates risks associated with delays and smaller projects.

Timely project execution is crucial for NGEL, especially as it scales up operations. Addressing concerns, Singh explained, “We have invested heavily in core competencies over the past decade, which enable us to design and manage projects in-house. This reduces dependency on external agencies and ensures continuity, even if a contractor underperforms.”

Supply chain disruptions, especially for imported solar components, have been another area of focus. Singh emphasised, “Government initiatives have significantly boosted domestic module manufacturing capacity to 50-60 GW, mitigating concerns about module availability.” Key project risks like land acquisition and evacuation are addressed by collaborating with state governments and establishing large-scale solar parks with integrated pooling stations, ensuring smoother operations and scalability.

Renewable Energy Demand
India’s renewable energy demand remains robust, driven by government initiatives and unmet Renewable Purchase Obligations (RPOs). Singh shared his optimism, stating, “The demand is very healthy, and with the addition of battery storage and other innovations, we are confident of achieving our 60 GW target much earlier than 2032.”

With its ambitious expansion plans, commitment to innovation, and strategic use of funds, NTPC Green Energy is aiming to carve out a place as a major player in India’s renewable energy sector.