NTPC Plans To List Renewable Energy Unit By November
The company will start DRHP activities post-June 'so filing and other due diligence processes will take shape', director Jaikumar Srinivasan said. 'NTPC would of course be the holding company.'
NTPC Ltd. plans to list its renewable energy arm, NTPC Green Energy Ltd., around October or November, according to the company's Director Jaikumar Srinivasan. After the initial public offering, NTPC will continue to be its holding company, he said.
"We are going ahead with IPO plans," said Srinivasan in the company's post-earnings call. "This would be tentatively around October or November."
The company will start DRHP activities post-June "so filing and other due diligence processes will take shape", he said. On being asked if there'll be any structural changes after the IPO, Srinivasan said "NTPC would of course be the holding company."
Earlier this year, PTI, citing sources, reported that the company had received approval from the Department of Investment and Public Asset Management to list its green energy arm, NTPC Green Energy Ltd., to raise up to Rs 10,000 crore.
About the timing of the listing, given that the renewable commissioning has been slow due to reasons such as land and modular availability, Srinivasan said, "We don't think that it would be any kind of rush because we are going as per our plan and our conviction."
"There is immense value capturing that we foresee, given the visibility of almost 22 gigawatts, which I was sharing with you, and the plans for going ahead and reaching 60 gigawatts by fiscal 2032," he said.
"Coming to the support of NTPC, see, depending on our investment plans and expansion plans, the equity requirement will be taken care of primarily through follow-up on public issues, which, in any case, we are mandated to reach 25% progressively," Srinivasan said.
Besides that, in case of need, the holding company will stand behind to support any kind of supplementing the equity requirement, he said.
As of the quarter ended March 2024, the company's public shareholding was at 48.90%.
Shares of NTPC fell for the second consecutive session on Tuesday and were trading 0.88% lower at Rs 366.35 apiece, compared with 0.10% gain in the benchmark BSE Sensex at 1:20 p.m.
