India IPO frenzy continues as NTPC Green Energy plans $1.2 bn listing

By Dave Sebastian

The renewable-energy arm of India’s state-run power producer NTPC Ltd. is seeking to raise as much as Rs 10,000 crore ($1.2 billion) in its initial public offering, underscoring how the world’s busiest market for listings is now attracting bigger deals.

New Delhi-based NTPC Green Energy Ltd. plans to use the proceeds to invest in its subsidiary and repay loans taken by the unit, according to a draft prospectus dated Wednesday. The company has yet to decide its listing date. 

At least three more companies, including SoftBank-backed Swiggy Ltd., as well as Indian units of LG Electronics Inc. and Hyundai Motor Co., are looking at $1 billion-plus IPOs in the coming months after recent debutants saw their shares surge on listing. Bajaj Housing Finance Ltd.’s stock more than doubled on debut this week, after raising $781 million in India’s biggest IPO of the year so far.

 

While majority of the India IPOs have been smaller than $50 million so far, the nation has already seen 90 deals this quarter, compared with 54 in the US, making the South Asian nation the busiest IPO market globally, according to data compiled by Bloomberg. In terms of the amount raised, it’s still behind the US and Hong Kong, the markets that hosted the biggest two listings in the world this year.

Enthusiasm for IPOs has boosted India’s listing proceeds to $8.8 billion so far in 2024, already exceeding the annual tallies for the two preceding years, data compiled by Bloomberg show. 

The IPO boom comes as India’s rapid economic expansion makes it a bright spot amid challenges facing peers such as China. The demand is being fueled by both local and foreign investors. 

NTPC Green has solar and wind-power assets, and operates in more than six states. The company posted a net income of 1.4 billion rupees on revenue of 5.8 billion rupees for the three months through June this year, according to the draft prospectus.  

IDBI Capital Markets & Securities Ltd., HDFC Bank Ltd., IIFL Securities Ltd. and Nuvama Wealth Management Ltd. are book-running lead managers of the offering.