There is good news for investors waiting for IPO. The way has been cleared for two more IPOs to enter the market. Market regulator Securities and Exchange Board of India (SEBI) has given approval to NTPC’s renewable energy arm NTPC Green Energy and education-focused NBFC Avanse Financial Services Ltd to raise funds through initial public offering (IPO). According to language news, SEBI gave this information in an update on Monday.
Approval received during 22-23 October
According to the news, NTPC Green Energy is planning to raise Rs 10,000 crore and Avanse Financial Services is planning to raise Rs 3,500 crore through IPO. Both the companies received the findings from SEBI during October 22-23. In the language of SEBI, getting the findings means getting the green signal to launch the IPO. Both the companies had filed their IPO documents with SEBI between July and September. According to the documents, the IPO of NTPC Green Energy is entirely an issue of new shares.
NTPC Green Energy’s operating revenue to grow at a CAGR of 46.82 per cent from Rs 910.42 crore in FY2022 to Rs 1,962.60 crore in FY2024. Profit after tax (PAT) to grow at a CAGR of 90.75 per cent from Rs 94.74 crore in FY2022 to Rs 344.72 crore in FY2024.
use of funds raised
The company will use the IPO proceeds to repay debt and for general corporate purposes. Avanse Financial Services’ IPO involves fresh issue of shares worth up to Rs 1,000 crore and offer for sale (OFS) of up to Rs 2,500 crore. NTPC Green Energy, promoted by NTPC Limited, is the largest renewable energy public sector enterprise (except hydro) in operational capacity by June 30, 2024 and power generation in FY 2024. IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities and Nuvama Wealth Management will be appointed as book-running lead managers to the issue for this IPO.
