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According to sources, NTPC intends to raise Rs.5,000 Crore through the sale of a stake in a newly created green energy arm. These sources claimed that the state-owned power generator giant engaged SBI Capital Markets for advice on the sale process. It could officially launch in October.
Feelers have been sent to Middle East sovereign wealth funds in Abu Dhabi and Kuwait as well as Canadian pension funds. After receiving funds, NTPC wants to keep a majority of the stake. Due to its sovereign backing, the stake sale should attract significant interest.
NTPC is hiving off 15 of its renewable energy projects into NTPC Green Energy. The company’s 100% stake in NTPC Renewable Energy Ltd will also be transferred to NTPC Green Energy. This will allow it to pursue its green energy goals.