NTPC Green Subsidiary NGEL Listing
State-owned energy giant NTPC Ltd is poised to list its wholly-owned subsidiary, NTPC Green Energy Limited (NGEL), tentatively by October or November this year to gather funds for green initiatives. The company intends to accelerate this process post-June, as indicated by its senior management during an investor call.
“We are proceeding with IPO plans, tentatively set for around October or November. Following June, activities such as filing DRHP (draft red herring prospectus) and other due diligence processes will commence,” the company stated.
Furthermore, the company is considering a follow-on public offer (FPO) to further bolster capital for its green endeavors subsequent to its exchange listing. “Depending on our investment and expansion plans, the equity requirement will primarily be addressed through an FPO, as mandated to progressively reach 25%,” the company explained. “Additionally, if necessary, the holding company will supplement the equity requirement.”
The company emphasized the significant value it anticipates from its green energy business and identified favorable market conditions with abundant investment prospects.
Earlier reports by FE revealed that the Department of Investment and Public Asset Management (DIPAM) had endorsed an NTPC proposal for the NGEL IPO, potentially slated for release in FY25. NTPC Group aims to achieve an operational renewable energy capacity of 60 GW by 2032, with plans to add 3 GW of RE capacity in FY24-25.
NTPC plans to augment its renewable energy capacity by 5 GW in FY26 and another 8 GW in FY27, alongside targeting new thermal orders totaling 15.2 GW in the coming years. The company aims to award thermal projects with a cumulative capacity of 10.4 GW in FY25, with expectations to commission 2.8 GW of thermal capacity in FY25 and an additional 1.5 GW in FY26. Over the next three years, NTPC aims to add 22.5 GW of cumulative installed power capacity, including nuclear energy, pump storage plants, thermal, and renewable power.
Regarding its nuclear projects through a joint venture with the Nuclear Power Corporation of India (NPCIL), the company anticipates Cabinet approval for the JV by the end of June.
“The joint venture with NPCIL is anticipated to receive cabinet clearance by the end of next month. Subsequently, the Mahi Banswara power project in Rajasthan is likely to be allotted to this JV, with commissioning expected by 2032,” the company stated.
Highlighting its capital expenditure plans, the company intends to invest Rs 35,000-50,000 crore annually over the next two to three years. NTPC Ltd reported a 33% surge in its consolidated net profit for the last quarter of FY23-24, reaching Rs 6,490.05 crore compared to Rs 4,871.55 crore in the fourth quarter of FY23. On a sequential basis, net profit increased by 24.5%.
NTPC Group’s cumulative installed capacity rose to 75.95 gigawatts by the end of March, up from 72.25 GW in FY23. Coal production also increased to 27.79 million tonnes in FY24 from 20.23 million tonnes in FY23, with gross power generation growing by 5% to 361.70 billion units (BU).
Currently, NTPC’s energy portfolio comprises 81% coal, 9% gas, and 10% non-carbon sources, including renewables and hydro, with plans to expand into energy storage solutions and nuclear energy.
