NTPC Green Energy, Avanse Financial IPOs get Sebi approval: Rediff Moneynews

New Delhi, Oct 28 (PTI) NTPC Green Energy – the renewable energy arm of NTPC, and Avanse Financial Services Ltd – an education-focused NBFC have received Sebi’s nod to raise funds through initial public offers (IPOs), Update from the regulator market showed on Monday.

NTPC Green Energy and Avanse Financial Services are looking to raise Rs 10,000 crore and Rs 3,500 crore through initial public offerings, respectively.

The two companies, which filed their preliminary IPO documents with Sebi between July and September, received their comments during October 22-23, an update showed.

In Sebi parlance, receiving comments is a boon for public exposure of the issue.

The initial share sale of NTPC Green Energy is an all-new share issue without an offer for sale (OFS) component, as per the draft red herring prospectus (DRHP).

Of the total proceeds, Rs 7,500 crore will be used to repay or prepay some or all of the outstanding loan of NTPC’s subsidiary Renewable Energy Ltd (NREL) and a portion will be used for general corporate purposes.

NTPC Green Energy is a Maharatna central state-owned enterprise with a portfolio of renewable energy, including solar and wind power plants, spread across more than six states.

Avanse Financial Services’ proposed IPO includes fresh issue of up to Rs 1,000 crore and OFS of up to Rs 2,500 crore by selling shareholders, DRHP revealed.

The company, promoted by Olive Vine Investment Ltd, a subsidiary of Warburg Pincus, proposes to use the funds to raise capital for future needs.

As part of the OFS, Olive Vine Investment will sell shares worth Rs 1,758, Kedaara Capital Growth Fund III LLP will offload shares worth Rs 400 and International Finance Corporation (IFC) will sell shares worth Rs 342.

Avanse Financial Services is India’s second largest education-focused NBFC in terms of assets under management (AUM) as of March 31, 2024, according to a Crisil report.

On the other hand, VMS TMT withdrew the draft documents regarding the IPO on October 23. The regulator received draft documents regarding the company’s IPO in early October.