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India's largest power generator NTPC Ltd. has received 13 bids for purchasing the stake offered by NTPC in its renewable energy subsidiary.
NTPC Renewable Energy Limited (NREL) is a wholly owned subsidiary incorporated by NTPC in early April 2022. According to regulatory filings, NTPC segregated 15 renewable energy projects from its own portfolio to transfer to NREL. Revenues from these projects in FY22 came in at Rs 918 crores while the net worth of the same came in at Rs 1,365 crores during the same period.
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In mid-July 2022, a report was published that stated that NTPC was looking to raise around Rs 5,000 crores by selling a stake in NREL.
However, current reports suggest that NTPC is looking to raise Rs 2,000 crores equity through a private placement that would be followed by an initial public offering by the green energy arm. Several big names have submitted EoIs for the stake, which is estimated to be around 5-10%. CPPIB, ArcelorMittal, Petronas, Brookfield, NIIF and Dubai based TAQA are some of the few names.
Sources have suggested that an IPO for NREL could be floated in FY2024.
NTPC, which is a listed entity, surged as much as 2% today as it touched a high of Rs 166.40 per share as bulls found the news positive and drove up the stock. It currently trades around Rs 161.75 per share.
Article by Aman Agarwal.
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