Green plans: NTPC looks for strategic investors for clean energy arm
State-run NTPC is scouting for strategic investors in its wholly-owned subsidiary NTPC Renewable Energy (NREL), a senior company official aware of the development said. To meet the government’s asset monetisation target, NTPC is planning to float initial public offerings (IPOs) of some of its subsidiaries, including NREL, and the “strategic investors are expected to be brought in before the IPO,” the person added.
The company will aim to have reputed global investors as partners in its significant green energy capacity expansion plan, which can also potentially make NREL more attractive for an IPO.
As FE reported earlier, the IPO process of NREL is expected to be complete in FY23. NTPC had incorporated NREL to focus on its green energy business in October 2020, and its IPO is seen to unlock significant value, given the market performance of other renewable energy companies which have much lower capacity addition targets.
