NTPC Green Energy and Avanse Financial Services Secure IPO Approval for Major Fundraising

NTPC Green Energy and Avanse Financial Services have received approval from Sebi to raise substantial funds through IPOs. NTPC plans to raise Rs 10,000 crore, focusing on loan repayments and corporate purposes, while Avanse aims for Rs 3,500 crore to expand its capital base.

NTPC Green Energy, the renewable division of NTPC, alongside Avanse Financial Services, an education-focused NBFC, has been granted approval by Sebi to initiate public offerings, according to a recent update from the markets regulator.

These public share-sales aim to raise Rs 10,000 crore for NTPC and Rs 3,500 crore for Avanse, respectively. Both companies filed their IPO applications with Sebi between July and September and received observations, a term indicating Sebi's consent, in late October.

For NTPC Green Energy, all funds from the IPO will go towards fresh equity issues. The Rs 7,500 crore proceeds will largely go towards reducing NTPC Renewable Energy Ltd's existing loans and cater to general corporate expenses. Meanwhile, Avanse plans to bolster its capital base, even as its promoters, including Warburg Pincus and other stakeholders, partially exit through an offer-for-sale.

(With inputs from agencies.)