InvestorQ : Who are the major investors interested in buying a stake in the green energy subsidiary of NTPC?
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Who are the major investors interested in buying a stake in the green energy subsidiary of NTPC?

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4 weeks ago
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Public sector NTPC, India’s largest power generating company, has been getting expressions of interest from more than a dozen companies for its green energy unit, NTPC Green Energy Ltd. The EOI has basically come from the global asset managers and financiers for stake in its green energy arm. NTPC has been looking to sell a minority stake to raise up to Rs 2,000 crore through the stake sale. This will be part of the grand plan by NTPC to fund part of its expansion plan by monetizing its current assets and the value hidden in its subsidiaries.

Apparently, among the big names that have already submitted bids include Canada Pension Plan Investment Board (CPPIB), Brookfield of Canada, Abu Dhabi’s TAQA and National Investment and Infrastructure Fund (NIIF). Apart from the large sovereign funds and PE fund investors, there is interest from industry players too. The Malaysian oil and gas company Petronas and global steel major ArcelorMittal have also put their bids for the same. Obviously, they do see a lot of value in owning a captive green energy plant stake.

The reasons are not far to seek. NTPC has become very aggressive about it shift from fossil fuels to non-fossil based fuels. Hence, NTPC has now doubled its plan for non-fossil fuel based power to 132 GW by the year 2032. This includes solar, wind, hydro, nuclear and also green fuels. The estimated investment for this expansion is pegged at around $30 billion. NTPC Green Energy Ltd (NGEL) id the umbrella for all green energy initiatives of NTPC including green fuels, battery storage and energy efficiency; apart from alternate energy.

The stake sale of NGEL by NPTC is part of the asset monetisation target of NTPC which has been pegged at Rs15,000 crore over the next 3 years. In the coming months, NTPC will also look to monetize its stake in companies like NTPC Vidyut Vyapar Nigam Ltd, North Eastern Electric Power Corporation Ltd, NTPC-SAIL Power Company Ltd etc. The Centre has plans that can fetch around Rs39,832 crore from power generation assets; as part of the much larger asset monetization program.

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