NTPC preps IPOS of two subsidiaries

NEW DELHI: State-run NTPC Ltd has started the groundwork to hold initial share sales of its units NTPC Vidyut Vyapar Nigam Ltd (NVVN) and NTPC Renewable Energy Ltd (NTPC REL), with merchant bankers making preliminary presentations, said two people aware of the development.

NVVN and NTPC REL are expected to be among the first clean energy firms to list on the domestic bourses. Both are likely to play a pivotal role in helping India’s largest power generation utility reach 60 gigawatt (GW) renewable energy capacity by 2032 from around 4GW currently. NTPC plans to invest ₹1 trillion between 2019 and 2024 to become a 130GW power producer by 2032.

“The plan involves listing NVVN and NTPC REL. The quantum of the IPOS and their timing are yet to be decided. The merchant bankers are making preliminary presentations, post which a bid process will be called for a formal engagement,” said one of the two people cited above seeking anonymity. While NVVN was formed for power trading, it was also given green energy responsibilities such as purchasing solar power under the Jawaharlal Nehru National Solar Mission, creating renewable energy assets and has now made forays into electric mobility.

NTPC REL, on its part, has been bidding aggressively to set up solar projects. It is currently building India’s largest solar park of 4.75GW in the Rann of Kutch in Gujarat from where it will also generate green hydrogen on a commercial scale.

Queries emailed to an NTPC spokesperson on Friday remained unanswered.

NTPC group recorded a net profit of $1.85 billion on $13.32 billion revenue in 2020-21. The group has set an aim to reduce its net energy intensity by 10% as part of its energy compact goals. The company has an installed capacity of about 67GW across 70 projects with an additional 18GW under construction.