Upcoming IPOs: NTPC, ONGC and SJVN prepare to launch green energy IPOs; check details

India is the world's third-largest energy consumer and has set ambitious targets to reduce its carbon intensity to lower than 45% by 2030.

The government aims to incorporate 50% renewable energy into its power mix and reach a renewable energy capacity of 500 GW by the same year, ultimately striving for net-zero carbon emissions by 2070.

Amid the government’s focus on sustainable development, state-run companies like ONGC, NTPC, and SJVN Ltd are planing to launch initial public offerings (IPOs) for their green energy subsidiary to tap into the sector's opportunities.

NTPC Green Energy, the renewable energy arm of state-run power generation company NTPC has already filed draft papers with capital markets regulator Securities and Exchange Board of India (SEBI) to raise ₹10,000 crore via an initial public offering (IPO).

ONGC Green IPO

ONGC Green Energy, a subsidiary of Oil and Natural Gas Corporation (ONGC) established on February 27, 2024, focuses on renewable energy initiatives, including biofuels, green hydrogen and carbon capture.

In March 2024, ONGC committed ₹99 crore to ONGC Green, with an additional ₹1,100 crore pending board approval. While no official announcements have been made about the IPO, reports suggest that the company plans to launch the public offer for its green energy arm later this year.

During a recent conference call ONGC management shared that the company aims to achieve 10 gigawatts of green energy by 2030 with 70% from solar and 30-40% from wind and hydrogen sources.

NTPC Green Energy IPO

NTPC Green Energy, the renewable energy subsidiary of NTPC Limited, is poised for significant growth as it aims to build a 60-GW renewable portfolio over the next decade.

The company aims to raise funds via an IPO, anticipated in October or November 2024, to fund projects in solar, green hydrogen, and green ammonia.

With an expected issue size of ₹10,000 crore, this IPO will mark the largest initial share sale by a public sector company since the Life Insurance Corporation's ₹21,000 crore IPO in May 2022.

NTPC Green is also exploring innovative initiatives such as pumped hydro storage, e-mobility, and waste-to-wealth projects to expand its green footprint further both in India and potentially abroad.

SJVN Green Energy IPO

Satluj Jal Vidyut Nigam Limited (SJVN) is also preparing to list its subsidiary SJVN Green Energy Ltd (SGEL) to raise capital for its ambitious growth plans. SGEL aims to achieve an installed capacity of 25,000 MW by 2030.

The company has established a long-term agreement with Greenko Group’s AM Green Ammonia Holdings to supply 4,500 MW of carbon-free energy for its green ammonia facilities.

Additionally, SGEL has secured 1,352 MW of solar power projects in Maharashtra and has entered into a joint venture with Assam Power Distribution Company Limited (APDCL) to develop renewable energy projects which include 1,000 MW of floating solar power in Assam.

According to reports, SJVN is expected to launch the public offering for its green energy arm after the NTPC Green Energy IPO.