NTPC Green Energy, the subsidiary of India’s largest power producer NTPC, will be incurring a capex of ₹1 lakh crore over the next three years to take its green energy capacity to 19 GW by March 2027, NTPC Chairman and Managing Director, Gurdeep Singh, said.

NTPC Green currently has a portfolio of 16,896 MW, of which 3320 MW are operational and 13,576 MW are contracted and awarded. It has an additional pipeline of 9.2 GW, where term-sheets have been signed with joint venture partners or offtakers.

While the long-term plan is to reach 60 GW by 2032, requiring capex of the order of ₹3-3.5 lakh crore, it has an intermediate target of 19 GW by March 2027 with an investment of ₹1 lakh crore. Around 90 per cent of the green energy capacity will be solar and the remaining will be wind.

By the end of the current fiscal, it plans to get to 6-GW capacity and 11 GW the following year.

IPO price band

NTPC Green has set the price band for its forthcoming ₹10,000-crore IPO in the range of ₹102-108 a share. Funds would raised entirely through a fresh issue, and will be used for capex requirements, Singh said.

The floor price and the cap price of the price band are at 10.2 times and 10.8 times the face value of the shares and in the IPO, bids can be made for a minimum of 138 shares and in multiples of that thereafter. The issue is open for subscription during November 19-22. It would also raise about ₹4,500 crore through an anchor allotment. Officials said that it was seeing a good demand from global and domestic institutions. 

Singh added that capex funding will be 20 per cent from equity and the remaining through debt. Along with the funds raised in the IPO, the company has also tied up $15 billion in financing from a multilateral funding agency. It would require ₹20,000 crore to complete the projects on hand (11 GW under construction) and the funds for that have already been tied up.

The company will be going in for a follow-on offering after three years of its listing to comply with the minimum public shareholding norm and “we will time it in such a way that we will be able to raise the maximum possible at a good price,” Jaikumar Srinivasan, Director - Finance, NTPC, told businessline. He hinted at the possibility of a rights issue some time in the future.

Future plans

NTPC Green and its parent NTPC will be generating cash flows, enough to take care of the funding for capex. NTPC Green generates ₹60-80 lakh cash per MW of installed capacity.

“We have aggressive plans going forward,” Singh said, adding that the company was working on battery energy storage system, pumped hydro projects and has a large hydrogen hub coming up in Vishakhapatnam, on 1,200 acres. “We will be aggressive in the renewable energy segment and get a sizable share.”

For electrolysers, it has already tied up with two technology providers who will be working with the company while bidding for green hydrogen tenders. It has a 5-GW green energy park in Khavda, Gujarat, while it will set up a 10-GW renewable energy park in Maharashtra under a joint venture and a 25-GW park in Rajasthan, where it also plans to produce green hydrogen and its derivatives.

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