NTPC is engaged in the generation and sale of electricity. The principal business activity of the Company is the electric power generation by coal-based thermal power plant. The company’s business segments include generation and others.
NTPC has announced the completion of its acquisition of Government of India’s (GoI) share in THDC (75 per cent) and NEEPCO (100 per cent) for a total consideration of ₹11,500 crore. The consideration translates to 0.87x FY19 stake adjusted P/B (cumulative net-worth is ₹15,600 crore).
We believe the deal value is positive for NTPC since market expectations were between ₹13,000-15,000 crore. We estimate the acquisition to be value accretive on consolidated level (by 2 per cent/3 per cent for FY21E/FY22E),
