NTPC Green Energy Limited (NGEL) has announced its decision to issue unsecured non-convertible debentures worth Rs 1,500 crore through private placement. This move marks a significant step in the company's financial strategy, aimed at supporting its capital expenditure and corporate objectives.

Key Details of the Debenture Issue

Purpose and Utilization

The proceeds from this debenture issue are earmarked for several key purposes:

1. Financing capital expenditure
2. Refinancing and recouping capital expenditure already incurred
3. Extending financing for capital expenditure to subsidiaries and joint ventures through inter-corporate loans
4. Other general corporate purposes

Regulatory Compliance

NGEL has confirmed that this is the first debenture issue under the board resolution dated April 29, 2025. The company has stated that the Debenture Trust Deed will be executed in compliance with the requirements and within the timeframe prescribed by the Companies Act and associated rules.

Company Background

NTPC Green Energy Limited, a subsidiary of NTPC Limited, operates in the renewable energy sector. The company has been actively involved in expanding its green energy portfolio, aligning with India's push towards sustainable power generation.

Market Implications

This debenture issue by NTPC Green Energy Limited reflects the growing trend of renewable energy companies tapping into the debt market to fund their expansion and operational needs. The 7.01% coupon rate indicates the company's ability to secure financing in the current market conditions.

For investors, these debentures present an opportunity to invest in the renewable energy sector, backed by the parentage of NTPC Limited. However, as with all investments, potential investors should carefully consider the risks associated with such debt instruments before making investment decisions.

As NTPC Green Energy Limited continues to expand its footprint in the renewable energy sector, this debenture issue marks an important step in its financial strategy, potentially setting the stage for future growth and development in India's evolving energy landscape.

NTPC Green Energy Limited (NGEL) has announced the complete utilization of its Rs 10,000 crore Initial Public Offering (IPO) proceeds, according to a monitoring agency report by CARE Ratings Limited for the quarter ended September 30, 2025. The report, which provides an objective view of the funds' utilization, indicates that the company has adhered to its stated objectives without any deviations.

Breakdown of Fund Allocation

The IPO proceeds were allocated as follows:

Key Utilizations

Investment in NREL

• Rs 7,500.00 crore was invested in NTPC Renewable Energy Limited (NREL), a wholly-owned subsidiary, for repayment or prepayment of certain outstanding borrowings.

General Corporate Purposes

• Rs 2,352.86 crore was invested in ONGC-NTPC Green Private Limited (ONGPL), a joint venture between ONGC Green Limited and NGEL, for the acquisition of Ayana Renewable Power Private Limited (ARPPL).
• Rs 102.47 crore was utilized for interest expenses.

Issue Expenses

• The actual issue expenses amounted to Rs 44.67 crore, lower than the initially envisaged Rs 53.51 crore.
• The balance was redirected towards general corporate purposes, in line with the offer document.

Timely Completion

The monitoring report indicates that NTPC Green Energy has completed the utilization of funds ahead of schedule:

• The main investment in NREL was fully utilized by Q2 FY 2026.
• General corporate purposes and issue expenses were completed even earlier, by Q4 FY 2025.
• This is ahead of the projected completion by FY 2026 as stated in the offer document.

Compliance and Transparency

CARE Ratings Limited, serving as the Monitoring Agency, has reported no deviations from the stated objectives of the IPO. This adherence to the planned utilization underscores NTPC Green Energy's commitment to transparency and efficient capital allocation.

The timely and full utilization of the IPO proceeds, particularly the significant investment in its renewable energy subsidiary and strategic joint venture, positions NTPC Green Energy to strengthen its foothold in the growing renewable energy sector. As the company moves forward with these investments, stakeholders will be keen to observe the impact on its operational and financial performance in the coming quarters.