NTPC Green Energy IPO in FY24 – Are You Interested?

India’s largest power company is planning an IPO for NTPC Green Energy, its renewable energy arm. NTPC contributes nearly 24% of the total electricity produced in India and has an ambitious target of building a renewable generation portfolio of 60 GW by 2032. The company always remained ahead when it came to green energy adoption in India. NTPC Renewable Energy (NTPCREL), a wholly owned subsidiary of NTPC, was formed in 2020 to boost the renewable energy growth of the company. The company deals in solar, wind, as well as hybrid projects all over the country. It is also developing gigawatt-size renewable energy parks in different Indian states. In addition to this green hydrogen based mobility and ESG projects are also being undertaken. NTPC Green Energy was incorporated in 2022 to consolidate NTPC’s renewable energy activities under one entity, wherein NTPC Green Energy purchased all equity shares of NTPC Renewable Energy. Therefore, NTPC Green Energy (NGEL) is the holding company of NTPC Renewable Energy.

Now, NTPC plans to come out with NTPC Green Energy’s IPO in FY24. Last year, NTPC also tried to raise funds through a strategic investor but was unsuccessful. NTPC Green Energy is expected to support NTPC’s clean energy programs and is already entering into agreements with large Indian companies like HPCL and IOCL for setting up renewable energy projects in the country.

NTPC is a big company with decent financial performance as well as strong government support and its IPO is expected to receive a good response from retail investors. NTPC also received special approval from the government to invest more than the prescribed ceiling of 15% of its total net worth (estimated at Rs.1.28 lakh crores in FY22) in NTPC Green Energy. The renewable energy sector continues to attract increased foreign investment in India and is expected to be one of the growing sectors in India in the coming years.