IPO-Bound NTPC Green Inks JV Pact For 10 GW Renewable Energy Projects

NTPC Green Energy Ltd., the IPO-bound arm of the state-run NTPC Ltd., has entered into a joint venture agreement with Mahatma Phule Renewable Energy and Infrastructure Technology Ltd., or MAHAPREIT, for the development of 10 GW renewable energy projects, an exchange filing said on Thursday.

MAHAPREIT is a wholly-owned subsidiary of Mahatma Phule Backward Class Development Corporation, which is a public sector undertaking of the Maharashtra government.

The joint venture company will "undertake development of 10 GW of renewable energy parks and projects in Maharashtra or in any other state of India,"  the filing noted.

The JV pact was inked on Sept. 25 in Mumbai by NTPC Green Chief Executive Officer Rajiv Gupta and MAHAPREIT managing director Bipin Shrimali.

Currently, NTPC Green's renewable energy capacity stands at 3.34 GW of solar and 0.21 GW of wind energy. While 8.13 GW is under construction, the company has a pipeline of 10.57 GW of renewable capacity, as per the draft red herring prospectus for the company's IPO filed on Sept. 18.

NTPC Green aims to raise up to Rs 10,000 crore through the initial public offering, which will comprise only a fresh issue of shares without any offer for sale component. The IPO comes at a time when India is looking to ramp up its renewable energy sector. The government has set a target to increase renewables capacity to 500 GW by 2030, from around 200 GW at present.

In the quarter ended June 30, 2024, NTPC Green logged a net profit of Rs 138.6 crore on total revenue from operations of Rs 578.4 crore.

Shares of NTPC Ltd., the parent entity, were trading 0.58% lower at Rs 433.5 apiece on the NSE at 3:22 p.m., compared to a 0.78% rise in the benchmark Nifty 50.

Out of the 24 analysts tracking the company, 19 have a 'buy' rating on the stock, two suggest a 'hold' and three have a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 1%.