NTPC Renewable Subsidiary IPO: State-run NTPC Ltd has begun laying the groundwork for initial share sales of its Renewable energy subsidiaries NTPC Vidyut Vyapar Nigam Ltd (NVVN) and NTPC Renewable Energy Ltd (NTPC REL), according to two persons familiar with the effort.
The renewable energy companies NVVN and NTPC REL are anticipated to be among the first to list on domestic exchanges. Both are expected to play a key part in assisting India’s largest power-producing utility in achieving 60 gigawatts (GW) of renewable energy capacity by 2032, up from roughly 4GW now.
Between 2019 and 2024, NTPC expects to invest $1 trillion to become a 130GW power provider by 2032.
“The plan involves listing NVVN and NTPC REL. The quantum of the IPOs and their timing are yet to be decided.
The merchant bankers are making preliminary presentations, post which a bid process will be called for a formal engagement,” one of the two people cited above said when asked about the NTPC renewable subsidiary IPO.
While NVVN was founded to trade electricity, it was also tasked with green energy tasks such as purchasing solar power under the Jawaharlal Nehru National Solar Mission, developing renewable energy assets, and now foraying into electric mobility.
NTPC REL, on the other hand, has been aggressively bidding for solar projects. It is now constructing India’s largest solar park, with a capacity of 4.75 GW, in Gujarat’s Rann of Kutch, from which it will also generate commercial-scale green hydrogen.
On Friday, emails sent to an NTPC spokeswoman by Mint went unanswered.
In 2020-21, the NTPC group made a $1.85 billion profit on $13.32 billion in revenue.
As part of its energy-saving ambitions, the company wants to cut its net energy intensity by 10%. Around 67GW of installed capacity is spread among 70 plants, with another 18GW under construction.
The government’s campaign for green energy is paying off, with solar and wind power generation reaching an all-time high of 43.1GW on July 27.
India’s installed renewable energy capacity has also surpassed the 100GW mark. In addition, 50 GW is being installed, and another 27 GW is being tenderized. When compared to the country’s total installed power generation capacity of 383.73GW, this is a significant difference.
NTPC REL has also signed an agreement with the Union Territory of Ladakh for a green hydrogen mobility project, which will be jointly executed by the company and NVVN. NVVN also serves as a clearinghouse for cross-border electricity trade with Bangladesh, Bhutan, and Nepal.
NTPC has also issued a global tender for the installation of a 1GWh grid-scale battery storage system and is collaborating with Hyderabad-based Greenko to provide “round-the-clock” power.
NTPC Ltd is also interested in power distribution and is taking part in the privatization of Union territory electrical distribution firms (discoms).
It recently made a bid of 563 crores for Chandigarh’s energy distribution business, with CESC Ltd’s arm Eminent Electricity Distribution Ltd making the highest bid of 871 crores.
In addition to this, the company is also interested in assuming Puducherry’s electricity distribution tasks.
“The size and timing of the IPOs are yet to be determined. The merchant bankers are giving preliminary presentations, after which a bid process for a formal engagement will be called.”
