Discover the game-changing NTPC IPO move by, India’s power giant, as it prepares to launch its green energy subsidiary, NTPC Green Energy. Get the inside scoop on their ambitious plans for renewable energy expansion and green hydrogen initiatives, setting the stage for a revolutionary transformation in India’s energy landscape.
NTPC IPO Launch for FY25
NTPC, India’s prominent power producer, is gearing up to initiate an initial public offer (IPO) for its wholly-owned subsidiary, NTPC Green Energy, in the upcoming financial year FY25. This strategic move reflects the company’s commitment to expanding its renewable energy portfolio and addressing the pressing need for equity infusion in its business operations.
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Reasoning for IPO Consideration
NTPC IPO for its subsidiary NTPC Green Energy stems from the substantial requirement for equity infusion in the business. According to Bhargava, a company spokesperson, this need can be met through internal accruals or by tapping into the capital markets. The company foresees the inevitability of accessing the market to meet its equity needs in the foreseeable future.
NTPC Green Energy has ambitious capital expenditure (capex) plans, with approximately ₹10,000 crore earmarked for renewables this year and a projected ₹15,000-20,000 crore for the following year. Bhargava mentioned that the company typically allocates 20-25% of the capex amount as equity.
Amid India’s transition towards renewable energy and its commitment to reducing carbon emissions, NTPC Green Energy aims to achieve a capacity of 60 gigawatts (GW) by FY32, contributing to the nation’s larger goal of reaching 400 GW of renewable capacity. The company currently operates at a capacity of 3.5 GW and has a robust pipeline of projects totaling approximately 25-26 GW, with 8 GW under construction and another 10 GW under tendering.
Focus on Solar Energy
NTPC Green Energy’s expansion plans primarily focus on solar energy, aligning with its objective of supplying renewable energy at competitive prices. Bhargava emphasized the importance of leveraging globally available low-cost solar modules to maximize cost-efficiency while supporting the domestic industry.
In addition to its renewable energy endeavors, NTPC Green Energy is venturing into the green hydrogen sector, aiming to establish 5 GW of green hydrogen capacity out of the targeted 60 GW. The company plans to develop a dedicated hub spanning 1,200 acres near Pudimadaka village in Visakhapatnam, Andhra Pradesh, aligning with the Indian government’s energy transition initiatives.
NTPC Green Energy’s decision to pursue an IPO for its subsidiary reflects its commitment to sustainable growth and renewable energy expansion. With ambitious targets for capacity addition and green hydrogen initiatives, the company is poised to play a significant role in India’s renewable energy landscape while capitalizing on emerging market opportunities.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and National Thermal Power Corporation of India have contributed to the above report
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