NTPC Sets Sights on Unlocking Value with NTPC Green IPO, Eyes October-November Listing

In a strategic move to unlock value within its renewable energy sector, state-run power generation giant NTPC has unveiled plans for the initial public offering (IPO) of its subsidiary, NTPC Green. The company, during a recent analyst conference call, disclosed its intention to potentially list NTPC Green by October-November of the current year, signaling a significant milestone in its renewable energy endeavors.

The IPO, with a projected size of Rs 10,000 crore, is poised to be one of the largest primary market offerings by a public sector entity since the notable Rs 21,000 crore IPO of Life Insurance Corporation in May 2022. This move underscores NTPC's commitment to bolstering its renewable energy portfolio and leveraging capital markets to fund its ambitious projects.

Mohit Bhargava, CEO of NTPC Green, outlined the company's timeline for tapping into the primary market, highlighting a meticulous process involving the appointment of investment bankers. As per him, the company is in the process of appointing the merchant banker. It's about an eight to nine-month cycle from the present day, at least, if the venture can finally hit the market.

The proceeds from the IPO are earmarked to fuel ongoing and future initiatives across solar, green hydrogen, and green ammonia projects, aligning with NTPC's robust expansion strategy in the renewable energy sector. NTPC Green, established in April 2022 as a wholly owned subsidiary of NTPC, serves as the cornerstone of the company's efforts to consolidate and strengthen its renewable energy assets.

During the call with analysts following the Q4FY24 results, NTPC outlined its ambitious plans for thermal power projects, aiming to secure new orders totaling 15.2 GW in the coming years. The company also revised upwards its ordering pipeline for thermal capacity, now targeting 10.4 GW worth of orders for FY25, a substantial increase from previous projections.

Moreover, NTPC expressed confidence in its commissioning schedule, forecasting the commissioning of thermal power projects totaling 2.8 GW in FY25 and 1.5 GW in FY26. With a 25 percent share in India's power generation landscape and the nation's ambitious plans to add 30–40 GW of renewable energy capacity annually, NTPC stands poised to sustain its market dominance without necessitating external equity infusion, as highlighted by brokerage firm Nuvama.

The impending IPO of NTPC Green marks a pivotal juncture in NTPC's journey towards renewable energy leadership, showcasing its commitment to sustainability and value creation in the evolving energy landscape. As the company charts a course toward listing its green arm, stakeholders eagerly await further developments, anticipating the transformative impact of this landmark offering on India's renewable energy sector.