NTPC Green Energy Ltd. (NGEL), a subsidiary of India’s state-owned power company NTPC, is reportedly planning to raise funds through an initial public offering (IPO) during the current fiscal year. The source did not reveal the amount of funds that NGEL plans to raise through the IPO. SBI Capital Markets will act as an advisor for the listing of NGEL.
In March 2023, the Union Cabinet allowed NTPC to invest more than 30% of its net worth in NGEL. NTPC aims to achieve a target of 60 gigawatts of renewable energy by 2032, and NGEL will play a critical role in achieving this target. The Union Cabinet also exempted NGEL’s investment in NTPC Renewable Energy Ltd. and its other joint ventures and subsidiaries, subject to a ceiling of 15% of its net worth beyond the monetary ceiling.
This move is in line with India’s push to increase its renewable energy capacity and reduce its reliance on fossil fuels. The Indian government has set a target of achieving 450 gigawatts of renewable energy by 2030. The IPO will enable NGEL to raise the required capital to invest in renewable energy projects and help NTPC achieve its renewable energy targets.