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India coal giant NTPC expects $2 billion from initial public offerings

October 04, 2021

Bloomberg ($):

India’s coal power giant NTPC Ltd. expects to raise 150 billion rupees ($2 billion) through initial public offerings in three units including its renewables business, and the paring of a joint venture stake, according to a company official familiar with the plans.

The state-run generator plans to sell shares in NTPC Renewable Energy Ltd. within a year, the official said, asking not to be named as the plans are still not public. A listing of hydropower unit North Eastern Electric Power Corp., which it bought last year, and power trading arm, NTPC Vidyut Vyapar Nigam Ltd., are planned for early 2024, the person said. 

The New Delhi-based company is also looking to sell its stake in NTPC-SAIL Power Co., a joint venture with Steel Authority of India Ltd. for supplying electricity to the steelmaker’s mills and townships.

NTPC, India’s largest electricity producer, has pivoted toward green energy as pressure mounts to reduce coal usage because of the fuel’s role in global warming and its harmful impact on environment and human health. Rising climate change concerns have restricted funding to fossil fuel projects and funneled investments into green energy. 

India’s fossil fuel tycoons including Mukesh Ambani, Gautam Adani and Sajjan Jindal have acknowledged the shift, and announced plans for a record expansion in green energy.  

[Rajesh Kumar Singh]

More: NTPC Said to Plan IPOs of 3 Units, Could Raise $2 Billion

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