NTPC, India’s largest public sector utility, is making headlines with its green energy subsidiary’s upcoming initial public offering (IPO) valued at ₹10,000 crore. This significant move is poised to mark a notable entry for NTPC Green Energy on Dalal Street, underscoring the company’s strategic push into the renewable energy sector.
NTPC’s Strategic Move: Green Energy IPO Plans
NTPC’s management is gearing up for a major value unlocking through the listing of NTPC Green Energy. The company has announced its intention to take the renewable energy business public by the end of 2024. With investment bankers already shortlisted for this substantial ₹10,000-crore IPO, the funds raised are expected to be allocated towards advancing NTPC Green Energy’s ongoing and future projects in key areas such as solar energy, green hydrogen, and green ammonia.
If successful, NTPC Green Energy’s IPO will become the largest initial public offering by a public sector company since Life Insurance Corporation of India’s ₹21,000-crore offering in May 2022. This move reflects NTPC’s commitment to strengthening its position in the renewable energy sector and contributing to India’s green energy goals.
NTPC’s Future Renewable Energy Goals
NTPC’s ambitious plans for renewable energy expansion are central to its long-term strategy. The company has set the following targets for its renewable energy capacity:
- By FY26, NTPC aims to add 11 GW of renewable energy capacity.
- By FY27, the company plans to commission 20 GW of renewable energy.
- By FY32, NTPC targets to achieve 40 GW of renewable capacity.
- The ultimate goal is to reach a total renewable capacity of 60 GW by 2032.
In addition, NTPC plans to invest in pumped hydro capacity, with a target to commission 14 GW over the next 6-9 years. These ambitious targets demonstrate NTPC’s dedication to advancing renewable energy and reducing reliance on fossil fuels.
The anticipation surrounding NTPC Green Energy’s IPO has generated considerable buzz, with reports indicating that NTPC is preparing to file for the public offering of its renewable energy arm. According to Moneycontrol, the company has engaged investment bankers to facilitate the ₹10,000-crore IPO, reflecting a significant step forward in NTPC’s green energy initiatives.
https://ntpc.co.in/NTPC’s management is keen on unlocking substantial value through this IPO, as noted by CNBC TV18. The company had previously outlined a timeline for the IPO, aiming for a launch by October or November 2024. In an interview from February 2024, NTPC Green Energy CEO Mohit Bhargava indicated that the company was targeting the primary market by FY25, with an expected eight to nine-month timeline for market entry once merchant bankers are appointed.
In earlier discussions, Bhargava emphasized the critical need for equity to support NTPC Green Energy’s growth. He highlighted that the company would need to raise equity either through internal accruals or through the market. NTPC plans to invest approximately ₹10,000 crore in renewable projects in 2024 and around ₹15,000-20,000 crore in 2025, with 20-25% of these investments typically coming from equity.
As NTPC moves forward with its green energy IPO, the company is not only aiming to unlock substantial value but also to reinforce its commitment to sustainable energy solutions. The successful execution of this IPO will mark a pivotal moment in NTPC’s journey towards becoming a leader in the renewable energy sector and advancing India’s transition to a greener future.
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