NTPC’s renewable arm is gearing up for its big IPO, aiming to raise funds for green energy projects
NTPC Green Energy, the renewable energy arm of NTPC, is set to apply for its much-anticipated Initial Public Offering (IPO). According to sources, the company is expected to file for an IPO soon, with the issue size likely around ₹10,000 crore. This move comes as NTPC Green Energy prepares to expand its presence in the solar energy, green hydrogen, and green ammonia sectors.
CEO’s Statement on the IPO
Mohit Bhargava, CEO of NTPC Green Energy, has highlighted the necessity for equity infusion to fund the company’s growing business. He mentioned that raising equity through the market is crucial for the company’s expansion. “We will have to raise equity either from internal sources or from the markets. So, at some point, we will have to go to the market,” Bhargava said in an earlier interview.
NTPC’s Renewable Energy Investment Plans
NTPC is moving aggressively in the renewable energy space, with a planned capital expenditure (capex) of ₹10,000 crore in 2024 and a further ₹15,000-20,000 crore in 2025. A significant portion of this investment will be for NTPC Green Energy’s solar and green energy projects. Typically, the company invests around 20-25% of its total investment as equity, which further emphasizes the importance of the IPO.
How the IPO Funds Will Be Used
Funds raised from the ₹10,000 crore IPO will be allocated to finance both current and upcoming green projects. These include NTPC Green Energy’s focus on solar power, green hydrogen, and green ammonia. The IPO is expected to be one of the biggest by a public sector company in recent years, following Life Insurance Corporation’s ₹21,000 crore IPO in May 2022.
The company has already shortlisted investment bankers to manage the upcoming IPO, indicating that the process is in its advanced stages. With this major step, NTPC Green Energy is positioned to further strengthen its role in India’s renewable energy future.
