Capital market regulator SEBI has cleared the papers of NTPC Green Energy and Avanse Financial Services to launch their initial public offering.
Incidentally, VMS TMT has decided to withdraw its draft papers filed for fund raising via an IPO.
NTPC Green Energy, a wholly-owned subsidiary of NTPC, plans to raise ₹10,000 crore through fresh issue of equity share in the IPO. The company had filed its IPO papers with SEBI in September.
The company will use about ₹7,500 crore from the IPO proceeds for investment in its wholly-owned subsidiary, NTPC Renewable Energy, which, in turn, will repay its debt.
NTPC Green Energy’s revenue from operations has grown at a CAGR of 47 per cent from ₹910 crore in FY22 to ₹1,963 crore in FY24. Net profit grew at a CAGR of 91 per cent from ₹94.74 crore in FY22 to ₹345 crore in FY24.
As of June-end, revenue and net profit were at ₹578 crore and ₹139 crore, respectively.
Augmenting capital
Avanse Financial Services, an education-focused non-banking financial company, plans to raise ₹3,500 crore to augment its capital base for meeting its future capital requirements.
Avanse Financial Services is the second-largest education focused NBFC in India. It also has the second highest disbursements in the FY23 and recorded the second-highest profit in FY24 among education-focused NBFCs in India.
The company offers a full-stack education offering with products ranging from education loans for students to growth capital for education institutions through education infrastructure loans.
It provides loans and other value-added services to Indian students and professionals who are admitted to study overseas or at domestic institutions. It also provides collateral-backed financing to private educational institutions in India.
