The buzz around NTPC Green Energy’s initial public offering (IPO) has resurfaced, with CNBC TV18 reporting that India’s largest public utility, NTPC, will soon file for the public issue of its renewable energy arm. Moneycontrol had earlier reported that NTPC had shortlisted investment bankers for the proposed Rs 10,000-crore IPO of NTPC Green Energy.
NTPC management is aiming for significant value unlocking through the listing of NTPC Green Energy, reported CNBC TV18 citing unidentified sources. The company management had earlier said that they plan to list the renewable energy business by the end of the calendar year 2024.
Previous updates on IPO
Back in May 2024, NTPC had provided a clearer timeline for the listing, indicating it was likely to take place by October or November 2024. In a February 2024 interview, NTPC Green CEO Mohit Bhargava had mentioned that the company was targeting the primary market by FY25. He estimated an eight to nine-month timeline for hitting the market, once merchant bankers were appointed.
Purpose and scale of the IPO
The Rs 10,000-crore IPO will mark the biggest share sale by a PSU since Life Insurance Corp's Rs 21,000-crore IPO in May 2022. The funds raised will be used to finance NTPC Green’s ongoing and future projects, including solar energy, green hydrogen, and green ammonia.
NTPC Green Energy’s growth plans
NTPC Green Energy, which was incorporated in April 2022 to consolidate NTPC's renewable energy assets, currently has 3.3 GW of installed capacity, with an additional 5.9 GW under construction. The company has a pipeline of 10.8 GW, including bids won and bilateral tie-ups, and aims to add around 60 GW of renewable capacity by 2032.
Brokerage outlook
Nuvama had earlier noted that NTPC’s dominant 25 percent share in India’s power generation, along with the country’s plan to add 30-40 GW of renewable energy capacity annually, positions the PSU to maintain its market share without needing external equity.
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