NTPC Green Energy IPO launch expected by year-end: Here’s what we know so far

NTPC Green Energy Ltd (NGEL), a subsidiary of state-run NTPC Ltd that focuses on renewable energy projects, is likely to launch its initial public offering (IPO) in the second half of the current fiscal year.

NTPC Ltd has reportedly informed analysts in a conference call that it would likely list NTPC Green Energy by October-November of this year. The company has, in fact, already shortlisted investment bankers for the proposed IPO in April, according to reports.

NTPC has proposed to raise around ₹10,000 crore through the NTPC Green Energy public issue, reports suggest. This will make it the biggest IPO by a public sector company in over two years since the ₹21,000-crore issue of the Life Insurance Corporation of India (LIC) in May 2022.

NTPC had said that the proceeds from the IPO are intended to be used to fund ongoing and future projects across solar, green hydrogen and green ammonia.

About NTPC Green Energy

NGEL is an umbrella company for the green business initiatives of NTPC. It was incorporated in April 2022 as a wholly owned subsidiary of NTPC to plan, promote and organize an integrated development of power generation through non-conventional and renewable energy sources and to acquire green energy assets from NTPC and/or from the market.

As of March 2023, NGEL had acquired 15 renewable energy assets and 100% shares of NTPC Renewable Energy Ltd from NTPC. These assets are present across 6 states and have long-term power purchase agreements (PPAs) with state power distribution companies.

In line with the commitment of NTPC to add 60 GW renewable capacity by 2032, NGEL has taken various initiatives such as setting up of solar and wind power projects, ultra-mega renewable energy power parks (UMREPP), green hydrogen etc.

For FY 2022-23, the company’s total revenue had stood at ₹170.60 crore. During the financial year, NGEL had a credit balance of ₹174.44 crore in its standalone financial statement. Consequently, it had earned a net profit of ₹174.44 crore. Excluding this one-off gain, net profit stood at ₹56.38 crore.

Shares of NTPC Ltd closed 1.28% lower at ₹370.15 apiece on the NSE.