#NSE0078– NTPC Green Energy, a wholly owned subsidiary of NTPC established in April 2022, has shortlisted four investment banks to manage its Rs 10,000 crore (approximately $1.2 billion) initial public offering (IPO). This IPO will be the largest by a state-owned entity since the Life Insurance Corporation of India’s share sale in 2022.
NTPC Green was created to consolidate NTPC’s renewable energy assets, aligning with global trends towards sustainable and green energy solutions. Initially, NTPC had planned to sell a 20 percent stake in NTPC Green to a strategic investor, with Malaysian energy giant Petronas emerging as the highest bidder with an offer of $460 million. However, NTPC eventually decided against this stake sale, opting instead to raise funds through the public offering.
The IPO will include a shareholder quota, meaning existing shareholders of NTPC will have an opportunity to buy shares in NTPC Green Energy’s IPO. To be eligible for this quota, one must own at least one share of NTPC. This move is likely designed to reward and attract long-term investors, ensuring robust participation in the IPO.
Further details on the IPO structure and timeline are anticipated soon, but the involvement of major investment banks and the strategic shift towards public fundraising underline NTPC Green’s significant role in India’s renewable energy landscape.
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