NTPC Green (NGEL), which recently launched its initial public offering (IPO), has partnered with New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) for setting up renewable energy projects worth Rs 1.87 lakh crore.
The plan is to develop 25 gigawatt (GW) of solar, wind and hybrid renewable energy projects with or without storage, along with 10 GW of pumped hydro storage. It also includes green hydrogen production of 0.5 million metric tonnes per annum (MMTPA) capacity and derivatives production such as green ammonia and methanol.
The project is estimated to generate employment of over 1,06,250 individuals and deliver financial benefit of Rs 20,620 crore over the upcoming 25 years.
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The collaboration is a part of Andhra Pradesh government’s Integrated Clean Energy Policy 2024 under which the state government aims to achieve 78.5 GW of solar power, 35 GW of wind power and 22 GW of pumped hydro storage, along with a production of 1.5 MMTPA of green hydrogen within five years.
NTPC Green IPO
The green energy company IPO, valued at Rs 10,000 crore, saw 93 per cent subscription by the end of the second day. The IPO opened for subscription on November 19. Priced between Rs 102–108 per share, it is set to close today, November 22.
The company plans to utilise the amount towards repayment of some outstanding loans. “We intend to utilise a portion of our net proceeds aggregating to Rs 75,000 million in the form of investment in equity or debt or a combination of both or in any other manner as may be decided by our Board,” said the company in its draft red herring prospectus with the Securities and Exchange Board of India.
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Experts recommend making a long-term investment in the leading renewable energy company. “We believe NTPC Green Energy IPO brings investors an opportunity to invest in a leading player of India’s renewable energy sector, backed by the formidable resources and expertise of NTPC Ltd,” Research Analyst at Mehta Equities Rajan Shinde told Outlook Business earlier. “Hence, looking at attributes we recommend only risk-taking investors to “SUBSCRIBE” the NTPC Green Energy Ltd IPO for long term perspective only,” he added.
After the Hyundai Motors India and Swiggy IPOs launched earlier this year, NTPC Green Energy is the third largest public issue of the year.
In terms of operating capacity and power generation, it is one of the biggest renewable energy public sector enterprises and is among the top 10 clean energy companies in India. As of June 2024, the company’s portfolio comprised 14,696 megawatts (MW), including 2,925 MW of operating projects. It also has around 10,975 MWs of capacity under pipeline.
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