IPO-Bound NTPC Green Energy Forms JV With ONGC Arm To Boost Renewable Push
The JV, named ONGC NTPC Green Pvt., has been incorporated a day before NTCP Green Energy's Rs 10,000-crore IPO opens for subscription.
IPO-bound NTPC Green Energy Ltd., a subsidiary of NTPC Ltd., and ONGC Green Ltd., an arm of Oil and Natural Gas Co., on Monday announced a 50:50 joint venture aimed at boosting India's renewable energy push.
The JV, named ONGC NTPC Green Pvt., has been incorporated a day before NTCP Green Energy's Rs 10,000-crore public offer opens for subscription.
ONGC NTPC Green has been seen set up with an authorised share capital of Rs 10 lakh, an exchange filing said. Both partners have subscribed to 50,000 equity shares of Rs 10 each.
The JV is geared towards developing renewable energy projects domestically and internationally, the filing added. It will focus on the following projects:
Renewable energy: Setting up greenfield renewable energy assets, acquiring operational assets, and ensuring power sales through opportunities like tariff-based competitive bidding tenders will be among the areas of focus, according to a release.
Offshore wind energy: The JV will exploring the feasibility of offshore wind projects in India, which is seen as a vital step toward harnessing untapped energy resources.
Integrated solutions for affiliates: The JV will leverage renewable energy for ONGC Green and NTPC Green, and their affiliates to meet internal sustainability goals.
E-mobility and storage: Energy storage, electric mobility, and ESG-compliant projects to align with evolving green standards will also be among the areas of focus of the new JV.
Carbon Credits: The venture will also exploring avenues to generate carbon and green credits, thereby advancing India’s transition to a low-carbon economy, the release added.
The formation of the JV aligns with India's ambitious target of achieving 500 GW of renewable energy capacity by 2030, both the companies said.
The announcement comes on the heels of NTPC Green Energy's initial public offering, which comprises entirely via a fresh issue of approximately 92.6 crore shares.
The IPO is set to become India's third largest IPO this year after Hyundai Motor India Ltd. and Swiggy Ltd. The anchor book issue will be open for subscription on Monday.
The price band is fixed between Rs 102 and Rs 108 per share. At the upper price band, the company is valued at a market capitalisation of Rs 91,000 crore.
Shares of NTPC, the parent company, closed 1.49% lower at Rs 366.95 apiece on the NSE, as compared to a 0.34% decline in the benchmark Nifty 50.
