NTPC Plans to List IPO of Green Energy Business by End of 2024
State-run power generation firm, NTPC will unlock value from its renewable energy business with the listing of NTPC Green through an initial public offering (IPO) in October-November this year. It gave clearer plans about tapping into the primary market during a recent call with analysts. The launch process of the IPO began earlier this year when investment bankers were shortlisted in April for the proposed Rs.10,000 crore IPO.
It was initially reported that NTPC is geared to enter the market by FY25. The company is working with merchant bankers and this will be progressed in the next eight to nine months before hitting the market.
Funds raised from the IPO will be used to fund continuous as well as future projects in the areas of solar, green hydrogen and green ammonia. The offer is set to be the largest public sector issue since the Rs.21,000 crore Life Insurance Corporation (LIC) share sale in May 2022, as the issue size for NTPC Green has been pegged at Rs.10,000 crore.
During a recent conference call after Q4FY24, NTPC presented aggressive plans on its scale of expansion of thermal power. It is looking to place 15.2 GW of orders in the pipeline for new thermal orders and has increased its ordering pipeline for thermal power projects manifold. NTPC now hopes to order 10.4 GW of thermal projects in FY25 as against 8.3 GW earlier.
In thermal, NTPC is expected to add 2.8 GW in FY25 and 1.5 GW in FY26 for the commissioning of its order book.
With NTPC holding a 25% share in the Indian power generation space, coupled with India adding 30-40 GW of renewable energy capacity every year, analysts are of the view that the company will stay in good space to command its share of the market, without any equity support.
NTPC Green was established in April 2022 as a wholly-owned subsidiary of NTPC. The mandate of NTPC Green is to cluster together, and assemble NTPC’s renewable energy assets, well-positioned to take advantage of this growth in clean energy demand within India.
