NTPC Green Energy — the renewable energy arm of NTPC, and Avanse Financial Services Ltd — an education-focused NBFC, has received Sebi's go-ahead to raise funds through initial public offerings (IPOs), an update with the markets regulator showed on Monday.
NTPC Green Energy and Avanse Financial Services are looking to garner Rs 10,000 crore and Rs 3,500 crore through initial share-sales, respectively.
The two companies, which filed their preliminary IPO papers with Sebi between July and September, obtained their observations during October 22-23, the update showed.
In Sebi's parlance, obtaining observations means its go-ahead to float the public issue. NTPC Green Energy's initial share-sale is entirely a fresh issuance of equity shares with no offer-for-sale (OFS) component, according to the draft red herring prospectus (DRHP).
Of the total proceeds, Rs 7,500 crore will be used to repay or prepay part or all of its subsidiary NTPC Renewable Energy Ltd's (NREL) outstanding loans and besides a portion will be utilised for general corporate purposes.
NTPC Green Energy is a 'Maharatna' central public sector enterprise with renewable energy portfolio including solar and wind power assets, spread across more than six states.
Avanse Financial Services' proposed IPO comprises a fresh issue of equity shares of up to Rs 1,000 crore and OFS of up to Rs 2,500 crore by the selling shareholders, the DRHP showed.
The company, which is promoted by Olive Vine Investment Ltd, an affiliate of private equity major Warburg Pincus, proposes to use the funds to increase its capital base for future needs.
As a part of the OFS, Olive Vine Investment will sell shares worth Rs 1,758 crore, Kedaara Capital Growth Fund III LLP will offload shares to the tune of Rs 400 crore and International Finance Corporation (IFC) will divest shares worth Rs 342 crore.
Avanse Financial Services is the second largest education-focused NBFC in India by assets under management (AUM) as of March 31, 2024, according to a Crisil report.
On the other hand, VMS TMT has withdrawn its draft IPO papers on October 23. The regulator had received the draft IPO documents of the company in early October.