NTPC Green Energy, gearing up for its upcoming IPO, plans to invest up to Rs 1 lakh crore in solar and wind projects by the fiscal year 2027, according to Chairman and Managing Director Gurdeep Singh. Mr. Singh stated that 20% of the investment would be funded by equity, with Rs 20,000 crore coming from the company’s own resources, of which Rs 10,000 crore will be generated through the IPO.
The remainder of the required capital is expected to come from internal accruals. With a strong credit rating, thanks to the backing of NTPC, India’s largest power producer, the company is well-positioned to secure debt financing at lower rates compared to competitors.
NTPC Green Energy, currently operating 3,220 MW, aims to scale up its capacity to 6,000 MW by March 2025, 11,000 MW by March 2026, and 19,000 MW by March 2027. Singh noted that the majority (90%) of this capacity will be solar-based, costing approximately Rs 5 crore per MW, while the remainder will be wind, requiring Rs 8 crore per MW.
The IPO, set to open from November 19-22, will feature a fresh share issuance valued up to Rs 10,000 crore, with shares priced between Rs 102-108. Investors must apply in lots of 138 shares, making this one of the largest IPOs in recent times, following Swiggy’s Rs 7,000-crore offering.
Since its inception, NTPC has invested Rs 7,500 crore in NTPC Green Energy, which is now seeking a valuation of Rs 1 lakh crore. Singh highlighted the company’s focus on sustainability and competitiveness, mentioning rivals like Renew and Adani Green Energy. Beyond power generation, NTPC Green Energy has strategic plans for green hydrogen, pump storage power, and energy storage. The company will utilize a 1,200-acre land parcel near Vishakhapatnam, originally acquired for a coal-based plant, to establish a green hydrogen complex.
Additionally, NTPC Green Energy is in discussions with Tamil Nadu, Andhra Pradesh, Chhattisgarh, and Odisha for potential pumped storage projects, with the flexibility to acquire stressed assets, though it prefers new projects.
