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19 Nov 2024
State-run power major NTPC Ltd is likely to list its fully owned subsidiary NTPC Green Energy Limited (NGEL) by October or November this year to mobilise resources for green projects. The company is expected to expedite the process after June, the company’s top management said in an investor call.
“We are going ahead with IPO (initial public offering) plans. This would be tentatively around October or November. Post June, DRHP (draft red herring prospectus) activities of filing and other due diligence processes will take place.”
Moreover, the company is likely to come up with a follow-on public offer (FPO) to further raise capital for its green business post its listing on the exchanges. “Depending on our investment and expansion plans, the equity requirement would be taken care primarily through a follow-on public issue which in any case we are mandated to reach 25% progressively,” the company said. “Besides that, in case of need, the holding company will stand behind for supplementing the equity requirement.”
The company noted that there is an immense value capturing that it foresees in the green energy business and feel that the market is quite conducive with great investment opportunities.
FE had earlier reported that the department of investment and public asset management (DIPAM) had approved an NTPC proposal on the NGEL IPO, which could hit the market in FY25. NTPC Group plans to have an operational renewable energy capacity of 60 GW by 2032. To achieve the same, it has targeted 3 GW of RE capacity in the current financial year 2024-25.
The company further plans to add 5 GW of RE capacity in FY26 and add another 8 GW in FY27. It is also targeting new thermal orders with a total capacity of 15.2 GW in coming years. In FY25, the company intends to award thermal projects totalling a capacity of 10.4 GW. It also expects to commission 2.8 GW of thermal capacity in FY25 and another 1.5 GW in FY26. In the next three years, NTPC is targeting to add 22.5 GW cumulative installed power capacity including nuclear energy, pump storage plants, thermal, and renewable power.
In regards to its nuclear projects through joint venture with Nuclear Power Corporation of India (NPCIL), the company is optimistic of the Cabinet nod to the JV by June-end.
“The joint venture with NPCIL is expected to get cabinet clearance by next month-end. Post this, most likely the Mahi Banswara power project in Rajasthan shall be allotted to this JV which is expected to commission by 2032,” it said.
Highlighting its capex plans, the company said that it plans to spend Rs 35,000-50,000 crore annually in the next two to three years. NTPC Ltd on Friday registered a surge of 33% in its consolidated net profit for the last quarter of the financial year 2023-24 at Rs 6,490.05 crore from Rs 4,871.55 crore in the fourth quarter of FY23. On a sequential basis too, the net profit increased by 24.5%.
NTPC Group’s cumulative installed capacity reached 75.95 gigawatt (GW) by the end of March, up from 72.25 GW in FY23. The company produced 27.79 million tonnes of coal in FY24, against 20.23 million tonnes in FY23. Gross power generation also grew by 5% to 361.70 billion units (BU).
Currently, NTPC’s energy portfolio comprises 81% coal, 9% gas, and 10% non-carbon sources, including renewables and hydro. It plans to expand its portfolio in energy storage solutions and nuclear energy.
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