NEW DELHI: NTPC Green Energy Ltd (NGEL), a subsidiary of NTPC, plans to raise funds through an initial public offering (IPO) this fiscal year, according to a media report, citing a source.
The amount of funds to be raised through the IPO was not disclosed by the source.
Previously, NGEL had planned to sell NTPC’s 20% stake in the company to a strategic investor for INR 3,000 crore, but this did not materialize.
SBI Capital Markets will act as advisor on NGEL’s listing.
Three bidders had previously shown interest in the proposed sale of shares.
In March 2023, the Union Cabinet allowed NTPC to increase its investment in NGEL beyond the limit of 30% of its net worth.
According to NTPC’s annual report for the 2021-22 financial year, his net worth was Rs 1.28 lakh crore. NTPC aims to achieve 60 GW of renewable energy by 2032.
The union cabinet has granted NTPC Green Energy Ltd (NGEL) an exemption for its investment in NTPC Renewable Energy Ltd and other subsidiaries and joint ventures, subject to a limit of 15% of its net assets in excess of the monetary limit of Rs 5,000 crore to Rs 7,500 crore to Help parent company NTPC Ltd meet its target of 60 gigawatts of renewable energy capacity.
This decision, made in March of this year, allows NTPC to invest more than the previously imposed limit of 30% of its net assets in NGEL.
NTPC has set an ambitious goal of reaching 60 GW of renewable energy by 2032.
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