NTPC Green Energy plans IPO in FY 24

17 Apr 2023 , 11:40 AM

After its failed attempt to bring in investors, NTPC Green Energy is planning to list the company on the Indian stock exchanges in FY24. NGEL is a fully-owned subsidiary of NTPC. Earlier, it had planned to sell 20% of the NTPC’s stake in NGEL to a strategic investor for Rs 3,000 crore.

As per various reports, NTPC is planning to divest 25% of its green energy arm via a public offering. In March 2023, Malaysia’s Petronas had agreed to pay $460 million for a 20% stake in NTPC Green Energy, but it withdrew the bid, as per a Bloomberg report.

The IPO will be on a book building basis.

On March 17, the Cabinet Committee on Economic Affairs (CCEA) had approved increasing NTPC’s investment in NGEL above the prescribed limit of Rs 5,000 crore for a maharatna company in its subsidiary.

The quantum of funds to be raised through the listing is not disclosed by the reports. SBI Capital Markets will be the advisor for the listing of NGEL, the source said. Earlier, three bidders had evinced interest in the stake sale proposal but it could not materialise later.

Around 15 NTPC’s renewable energy assets were transferred to NGEL towards the end of 2022-23. NGEL will drive India’s largest power producer’s ambitious clean energy programmes. The company will have subsidiaries and joint ventures to carry out the projects.