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NTPC jumps on buzz of planning IPOs of 3 units

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Capital Market
Last Updated : Oct 04 2021 | 11:50 AM IST

NTPC rose 2.18% to Rs 142.90 on reports the state-run company expects to raise Rs 15000 crore through initial public offerings in three units.

The media reported that the state-run generator plans to sell shares in NTPC Renewable Energy (NREL) within a year. A listing of hydropower unit North Eastern Electric Power Corporation (NEEPCO), which it bought last year, and power trading arm, NTPC Vidyut Vyapar Nigam (NVVN), are planned for early 2024, reports added.

Further, NTPC is also looking to sell its stake in NTPC-SAIL Power Co., a joint venture with Steel Authority of India, for supplying electricity to the steel maker's mills and townships, reports suggested.

NTPC had incorporated NREL to focus on its green energy business in October 2020. By 2032, the company plans to have 60GW capacity through renewable sources constituting nearly 45% of its overall power generation capacity.

NTPC had acquired 100% equity stake in NEEPCO from the Government of India in March 2020. NEEPCO is conferred with the Schedule A- Miniratna Category-I CPSE status and operates 7 hydro, 3 thermal and 1 solar power stations with a combined installed capacity of 2057 MW.

NVVN was formed by NTPC in the year 2002, as its wholly owned subsidiary to tap the potential of power trading in the country. NVVN holds a highest Category 'I' power trading license as per latest CERC regulation. It has been designated as the nodal agency for cross border trading of power with Bangladesh, Bhutan and Nepal. NVVN is making foray in the e-mobility segment including providing vehicles and related services in various vehicle segments.

NTPC is a Maharatna company operating in the power generation business. The principal business activity of the firm is electric power generation through coal based thermal power plants. As of 30 June 2021, the Government of India held 51.10% stake held in NTPC.

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The company reported 16.8% rise in consolidated net profit to Rs 3,443.72 crore on 14.1% increase in net sales to Rs 29,888.02 crore in Q1 FY22 over Q1 FY21.

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First Published: Oct 04 2021 | 11:30 AM IST

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