NTPC Green Energy Ltd IPO

We are promoted by NTPC Limited, which has a legacy of around five decades, is one of Indias largest power companies, and has experience in operating and maintaining power stations efficiently and in acquiring land for large power projects throughout India.

As of September 30, 2024, our Portfolio consisted of 16,896 MWs including 3,320 MWs operating projects and 13,576 MWs projects contracted and awarded. We are in the process of constructing 36 renewable energy projects in 6 states consisting of 13,576 MWs, contracted and awarded.

We along with the NTPC Group have a strong track record of developing, constructing and operatingrenewable power projects, driven by our experienced in-house management and procurement teams. Our superior execution capabilities are demonstrated by 5 decades of successful operations by NTPC Limited.

With strong parent support and diversified portfolio with long term PPA, the Company is able to maintain a healthy interest coverage ratio. (Source: CRISIL Report, November 2024). As of September 30, 2024 and March 31, 2024, our interest coverage ratio was 2.60 times and 2.64 times (on a restated basis), respectively, and, as of March 31, 2023 and March 31, 2022, was 2.80 times and 3.17 times (on a special purpose carvedout basis), respectively.

We benefit from a strong balance sheet and AAA rating from CRISIL as of May 8, 2024. We believe that our ability to leverage the NTPC Groups outstanding credit and its long-term relationships with financial institutions will continue to provide us with access to a low cost of capital.

Our senior management team led by the Board of Directors, have decades of experience in the Indian power industry.

There is a concentrated pool of utilities and power purchasers for electricity generated by its plants and projects. Accordingly, the company derived a significant portion (more than 87%) of its revenue from operations from the company top five offtakers in Fiscal 2024, with its single largest offtaker contributing around 50% of the companys revenue from operations in Fiscal 2024. Loss of any of these customers or a deterioration of their financial condition could adversely affect its business, results of operations and financial condition.

Its business and profitability is substantially dependent on the availability and cost of solar modules, solar cells, wind turbine generators and other materials, components and equipment for its solar, wind and other projects. The company is dependent on third party suppliers for meeting its materials, component and equipment requirements, and its top 10 suppliers accounted for 92.65% and 77.71% of the company supplies in the six months period ended September 30, 2024 and in Fiscal 2024, respectively. Any disruption to the timely and adequate supply, or volatility in the prices of required materials, components and equipment may adversely impact its business, results of operations and financial condition.

The company renewable energy project construction activities may be subject to cost overruns or delays which may adversely affect its business, results of operations, financial condition and cash flows. Further, its future growth is significantly dependent on successfully executing its contracted and awarded projects. In the event, the company is not successful in executing its contracted and awarded projects, the companys business, results of operations and financial condition may be adversely impacted.

In the six months period ended September 30, 2024 and in Fiscal 2024, 62.20% and 61.74%, respectively, of its operating renewable energy projects are concentrated in Rajasthan. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in Rajasthan could have an adverse effect on its business, results of operations and financial condition.

Its Special Purpose Carved-Out Combined Financial Statements and Carved-Out Operating Data for Fiscal 2023 and Fiscal 2022 may not be representative of its results as an independent company.

Its Power Purchase Agreements may expose it to certain risks that may adversely affect the companys business, results of operations and financial condition. In addition, the company is required to give performance bank guarantees guaranteeing the commencement of supply of power which could adversely affect its results of operation if invoked. Further, the company revenue from operations are exposed to fixed tariffs, changes in tariff regulation and structuring.

The acquisition of the purchased renewable energy assets is subject to certain post closing actions, which are currently in the process of being fulfilled. Any failure to fulfil the post-closing actions may reduce the anticipated benefits of the acquisition, may impose limitations or costs on the Company or result in a material adverse effect on the business, results of operations, financial condition and prospects of the Company.

The company intend to use a majority of its Net Proceeds from the Issue towards the repayment or prepayment, in full or in part, of certain outstanding borrowings availed by its wholly owned Subsidiary, NTPC Renewable Energy Limited.

The company is dependent on its relationship with its Corporate Promoter, NTPC Limited, and any adverse developments in such relationship may adversely affect its business and reputation.

The company has incurred substantial indebtedness, and an inability to comply with repayment and other covenants in its financing agreements could adversely affect the companys business and financial condition.