The company typically invests 20-25% of this amount as equity.

NTPC's Renewable Energy arm to launch ₹10,000 Crore IPO

NTPC Green Energy, the renewable energy subsidiary of NTPC, is gearing up to file for an initial public offering (IPO) worth ₹10,000 crore, with plans to hit Dalal Street soon. Sources confirmed to CNBC-TV18 that NTPC aims to unlock significant value by listing its green energy unit. The company previously indicated that it intends to list the business by the end of 2024.

NTPC Green Energy CEO, Mohit Bhargava, in an earlier interview, emphasized the need for equity to support the business. "We need to raise equity, either through internal accruals or the market. We believe it's necessary to turn to the market eventually," Bhargava stated.

For 2024, NTPC plans to allocate around ₹10,000 crore for capital expenditure on renewable projects, increasing to ₹15,000-20,000 crore in 2025. The company typically invests 20-25% of this amount as equity.

Investment bankers have already been shortlisted for the proposed ₹10,000 crore IPO, according to Moneycontrol. The funds raised from the IPO are expected to be directed towards ongoing and future NTPC Green projects, including those in solar energy, green hydrogen, and green ammonia. With an issue size of ₹10,000 crore, NTPC Green Energy's IPO would be the largest public sector IPO since Life Insurance Corporation's ₹21,000 crore offering in May 2022.