After negotiations with 3 parties for strategic investment in the green energy arm failed, the state-run NTPC will launch an Initial Public Offering (IPO) for NTPC Green Energy (NGEL) in FY24. Here are the NTPC IPO Date, Price and Issue Size details you should read. As per sources, the country’s biggest power generator, which has an introduced limit of 71.6 gigawatts (GW), was in chats with three financial backers, including Petronas, a significant oil and gas organization possessed by the Malaysian government. Read More Business News on our website.
NTPC IPO Date, Price, Issue Size
In accordance with capital market standards, the objective of NGEL’s IPO in FY24 is to divest up to 25%of its shares. NGEL currently has approximately 3 gigawatts installed, 5 gigawatts under construction, and ten to eleven gigawatts under construction.
Taking into account the typical cost of 4-4.5 crores per megawatt (MW) for solar, a back-of-the-envelope calculation indicates that NGEL will require approximately 40,000 to 50,000 crores for projects that are currently in the planning stages.
A source guarantees that NTPC Efficient Power Energy Ltd., an auxiliary of the state-possessed power goliath NTPC, plans to send off a first sale of stock this monetary year.
NTPC Green Energy is an entirely owned subsidiary of NTPC. It had previously planned to provide a 20% stake in NTPC Green Energy to a strategic investor for Rs. 3,000 crores.
The source did not make the amount of money that would be raised by the listing public. The source claims that SBI Capital Markets will act as NTPC Green Energy’s listing advisor.
Three bidders had expressed interest in the stake sale proposal at first, but nothing transpired later. The Association Bureau approved NTPC’s plan to invest more than 30% of its total assets in NTPC Environmentally Friendly Power Energy in the spring of this year.
As per its yearly report for the monetary years 2021 and 2022, the NTPC had total assets of Rs 1.28 lakh crore. NTPC intends to have 60 GW of renewable energy by 2032.
To assist parent company NTPC Ltd. in reaching its goal of 60 gigawatts of renewable energy capacity, the Union Cabinet also exempted NTPC Green Energy’s investment in NTPC Renewable Energy Ltd. and its other joint ventures and its other subsidiaries and joint ventures from a maximum of Rs 5,000 crore to Rs 7,500 crore. Also, bookmark us for future the latest business news and updates.