NTPC shares were up over 2% on Tuesday, after the company’s subsidiary, NTPC Green Energy received the Indian markets regulator’s approval for an IPO.

What Happened: NTPC Green Energy has received the Securities and Exchange Board of India’s (SEBI) approval to raise ₹10,000 crore through an IPO, the company said in a statement.

The IPO is entirely a fresh issue of equity shares with a face value of ₹10 per equity share. There is a reserved portion for subscriptions from eligible employees.

See Also: Tata Tech Q2: Net Profit Down 2.8% To ₹157.41 Cr, Misses Estimates

The proceeds from the fresh issue, amounting to ₹7,500 crore, will be used for investments in NTPC Renewable Energy Limited (NREL), its subsidiary. These funds will be used for the repayment or prepayment of borrowings by NREL, as well as for general corporate purposes.

NTPC Green Energy is one of the largest renewable energy public sector enterprises encompassing solar and wind power assets. As of August 31, its operational capacity stood at 3,071 megawatts of solar projects and 100 megawatts of wind projects across six states.

As of June, the company’s portfolio included 4,696 megawatts including 2,925 megawatts of operating projects and 11,771 megawatts of contracted and awarded projects. Additionally, it has 10,975 megawatts of "capacity under pipeline", aggregating to 25,671 megawatts together with its portfolio.

The book-running lead managers for the issue are IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited. KFin Technologies Limited is the registrar for the offer.

Price Action: Shares of NTPC were up 2.12% at ₹412.45 on Tuesday morning.

Read Next: Shriram Finance Top Gainer As Nifty Snaps 5-Day Losing Streak