As the state-owned NTPC arm, NTPC Green Energy Limited (NGEL) launched its highly anticipated initial public offering (IPO), Gurdeep Singh, chairman and managing director of NTPC and NGEL, discussed the company’s future strategies, expansion plans, and renewable vision. In an exclusive interaction with Fortune India, Singh says NTPC Green currently has a 3,300 megawatt (MW) capacity and aims for up to 60 gigawatt (GW) by 2032, while achieving 19,000 MW by March 2027.
“Today, we have 3,300 MW capacity, and we are working on more than 11,000 MW of the capacity as of now. In this financial year, we will add 3,000 MW, taking the total capacity to 6,000 MW by March coming year. In the next financial year, we will be adding 5,000 MW, and subsequently, it's around 8000 MW, so totalling to around 19,000 MW by March 27. In the medium term, by 2032, we will be reaching 60 GW of the solar plus wind capacity,” explains NTPC Green CMD.
Singh further says that the IPO proceeds of ₹10,000 crore will be sufficient to achieve the capacity addition target. “We have infused about ₹7,500 crore in the NGEL, and have some retained earnings. So put together, it has a net worth of ₹8,281 crore today. We are now raising ₹10,000 crore, taking total net worth to ₹19,000... So this will be sufficient funding to reach up to that capacity.”
Formed in 2022, NTPC Green Energy is a 100% subsidiary of NTPC, with an estimated market capitalisation of ₹91,000 crore. Following the IPO, NTPC's stake in the company will come down to 89%.
As per the IPO documents filed with the SEBI, the company plans to use 75% of the raised capital (₹7,500 crore) to clear debts availed by NTPC Renewable Energy Limited (NREL). As of July 31, 2024, the company had outstanding borrowings (fund-based) of ₹16,235 crore on a consolidated basis.
As of September 30, 2024, NTPC Green’s portfolio comprises 16,896 MW, including 3,320 MW of operational projects and 13,576 MW of contracted and awarded projects. Adding to it, the ‘Maharatna’ central public sector enterprise (CPSE) has an additional 9,175 MW under pipeline through MOUs and term sheets, taking its total pipeline and portfolio capacity to 26,071 MW.
Explaining NGEL’s business prospects, Gurdeep Singh says the company is developing a 5,000 MW renewable energy park at Rann of Kutch in Khavada, Gujarat. “In addition, there is another energy solar renewable energy Park in that area, which we are also entering into the bidding process. Besides, we are working on around 2,000 MW there. So, it's a 7000 megawatt in Kutch area.”
“Similarly, the company has signed a joint venture agreement with the state of Rajasthan, where it is developing 25,000 MW. It has also signed a deal with two companies in Maharashtra, totalling about 20,000 MW,” he adds.
Singh further says that the renewable energy company is also in the “advanced stage” of entering into an agreement with Andhra Pradesh and many other states. “We are working along with the states and also with the central PSU like IOCL, ONGC, DVC, etc.”
The three-day IPO of NTPC Green opened for subscription today, looking to raise ₹10,000 crore at a price band of ₹102-108 per share. The issue is touted to be the third biggest IPO of the year, following Hyundai Motor India's ₹27,870 crore issue and Swiggy's ₹11,300 crore IPO. It is also going to be the largest in terms of fresh issues as the issue is the complete issuance of new equity shares and there is no offer for sale (OFS) component.
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