NTPC planning IPO of green energy business by October-November

The IPO proceeds are intended to be used to fund ongoing and future projects across solar, green hydrogen and green ammonia, the company had said.

State-run power generation company NTPC has shared a more clearer path to unloc value in its renewable energy business, and informed analysts in a concall that it is likely to list NTPC Green by October-November of this year.

NTPC Unlocking Value

The process of tapping the primary market had been underway, and Moneycontrol had reported last month that investment bankers for the proposed Rs 10,000 crore initial public offering had been shortlisted in April. Earlier, in February, Moneycontrol had cited Mohit Bhargava, CEO of NTPC Green stating that the company was aiming to tap the primary market by FY25. "We are in the process of appointing the merchant bankers and as we see, it's about an eight to nine-month cycle from where we are today, at least, if we are able to finally hit the market," Mohit Bhargava told CNBC-TV18 in February 2024.

The IPO proceeds are intended to be used to fund ongoing and future projects across solar, green hydrogen and green ammonia, the company had said. At a projected issue size of Rs 10,000 crore, NTPC Green’s IPO will be the biggest initial share sale by a public sector company since the Rs 21,000 crore IPO of Life Insurance Corp. in May 2022.

Ambitious Orders

In the concall with analysts after Q4FY24 results, NTPC said it is targeting new thermal orders worth 15.2 GW in the coming years, and has also raised the ordering pipeline for its thermal capacity. NTPC said it now intends to award 10.4 GW worth of orders for thermal power projects in FY25, which is significantly higher than what was earlier being projected.

In terms of commissioning as well, NTPC said it expects commissioning of thermal power projects worth 2.8 GW in FY25, and 1.5 GW for FY26.

Brokerage View 

Given NTPC’s 25 percent share in India’s power generation and the country’s plan to add 30–40GW of RE a year, Nuvama argues that the PSU is poised to maintain its market share without requiring external equity.

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About NTPC Green

NTPC Green was incorporated in April 2022 as a wholly owned subsidiary of NTPC to consolidate the parent company's renewable energy assets.