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NTPC Green Energy, a wholly-owned subsidiary of the power utility NTPC, has announced ambitious plans to invest approximately Rs 1 lakh crore in green energy projects by FY27. This signifies a significant commitment to renewable energy sources and aligns with the growing global demand for sustainable energy solutions. The company's focus will primarily be on solar and wind energy, with solar projects accounting for around 90% of the planned investments. The remaining 10% will be allocated towards wind energy projects, showcasing the company's diversification strategy.
The company's pipeline currently includes 16 GW of green energy projects, with plans to complete 3 GW in FY25, 5 GW in FY26, and 8 GW in FY27. This phased approach ensures a gradual and strategic expansion of their renewable energy portfolio. The majority of the capex, estimated at Rs 5 crore to Rs 7 crore per MW, will be directed towards solar energy projects, reflecting the significant potential of this technology in the Indian energy landscape.
NTPC Green Energy is poised to enter the public market through an Initial Public Offering (IPO) scheduled for November 19-22. The company intends to raise up to Rs 10,000 crore through a fresh issue of shares. The IPO price band has been set at Rs 102-108, with an estimated P/E ratio of around 147. This compares favorably to its peers, Adani Green Energy and ReNew Energy Global, which have valuations of around 259.83 and 470.05, respectively.
While currently focused on solar and wind energy, NTPC Green Energy is looking to diversify into emerging green technologies such as green hydrogen and battery storage. This foresight reflects the company's commitment to staying at the forefront of the evolving energy sector and adapting to changing market demands. Their involvement in developing a green hydrogen hub in Andhra Pradesh demonstrates their ambition to be a leader in this potentially transformative technology.
NTPC Green Energy's IPO is anticipated to attract significant investor interest, driven by the strong growth potential of the renewable energy sector and the company's established position in the Indian power market. The IPO is expected to provide investors with an opportunity to participate in the burgeoning green energy transition and contribute to a more sustainable future.
Source: IPO-bound NTPC Green Energy earmarks Rs 1 lakh crore for projects till FY27