InvestorQ : Is it true that NTPC also plans to take its renewable power subsidiaries public via IPO route?
swati Bakhda made post

Is it true that NTPC also plans to take its renewable power subsidiaries public via IPO route?

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Sam Eswaran answered.
2 months ago
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That is correct and it is purely to help the government meet its monetization targets from the power sector. NTPC will actually take its 3 subsidiaries public to help meet the target of $2 billion or Rs.15,000 crore target for the fiscal years FY22 and FY23. The 3 subsidiary companies in which NTPC will monetize stakes include NTPC Vidyut Vyapar Nigam, North Eastern Electric Power and NTPC-Renewable Energy and these will happen in next 2 years.

Apart from taking these above 3 companies public through the IPO route, NTPC will also exit its steel joint venture with SAIL, so as to free up funds by exiting non-core businesses and focus on its core power franchise and on improving its mix of renewable power. These three subsidiaries are into newer and greener forms of energy which are viewed more favourably by investors. This will enable NTPC to get better sum of total parts (SOTP) valuation.

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