State-owned company to bring country's second-biggest IPO, big investment in renewable energy business

Upcoming IPO: State-owned power generation company NTPC has shared a clear picture for unlocking value in its renewable energy business. The company recently said it is considering listing NTPC Green by October-November this year.

That means the company can launch its IPO in this period. This plan of the company is still in process. NTPC Green was incorporated into NTPC in April 2022.

The IPO may take 8 to 9 months

Investment bankers have been shortlisted for the Rs 10,000 crore IPO proposed last month. Earlier, NTCP Green CEO Mohit Bhargava had said that the company aims to enter the primary market by 2025. Mohit Bhargava said in February 2024 that the company is in the process of appointing merchant bankers. Currently it may take 8 to 9 months to arrive.

It will be the second largest IPO of a public sector company

The company said the funds from the IPO will be used for current and future projects related to solar, green hydrogen and green ammonia. The size of the IPO could be around Rs 10,000 crore. With this size, NTPC Green's IPO will be the second largest IPO to be launched by a public sector company. Before this, in May 2022, Life Insurance Corporation Rs. 21,000 crore IPO was launched.

Thermal capacity will also increase

Speaking to analysts after Q4 results of FY24, NTPC said it aims to win new thermal orders of 15.2 GW in the coming years and has also increased the order pipeline for its thermal capacity. NTPC said it now wants to place orders of 10.4 GW for thermal power projects in fiscal 2025, much higher than earlier estimates.

In terms of commissioning, NTPC said it expects to commission 2.8 GW of thermal power projects in FY 2025 and 1.5 GW in FY 2026.

Let us tell you that considering NTPC's 25% share of India's power generation and the country's plan to add 30-40 GW of renewable energy every year, Nuwama believes that the public sector company will be able to maintain its market share even without external equity. ready for