7/14/22, 12:50 PM ntpc: NTPC aims to raise Rs 5,000 crore via stake sale in green arm - The Economic

stake sale in green arm - The Economic Times

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Business News › Industry › Energy › Power › NTPC aims to raise Rs 5,000 crore via stake sale in green arm

NTPC aims to raise Rs 5,000 crore via stake sale in

green arm
By Mohit Bhalla, ET Bureau Last Updated: Jul 11, 2022, 09:01 AM IST
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Synopsis

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Under the government of India's National Monetisation Pipeline (NMP), various

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ministries have been assigned targets to raise funds through monetisation of assets of
public sector undertakings that come under their fold.

NTPC NSE -0.61 % plans to raise

iStock

₹5,000 crore by selling a stake in a

In April, Tata Power sold close to 10% in its arm
Tata Power Renewables to BlackRock and
Mubadala for ₹4,000 crore. The stake sale valued
Tata Power's renewable energy business at
₹35,000 crore.
Abu Dhabi and Kuwait, as well as pension funds of Canada.
FD
newly created green energy arm,
according to people aware of the
matter. The state-owned power
interest
generation giant has engaged SBI
Capital Markets to advise on the sale rate up
to 7.75%
process, which could be formally
launched in October, these sources
said. Feelers have been sent to Middle
East-based sovereign wealth funds of
Bajaj Finance

NTPC is keen to retain a majority stake in the arm after infusion of funds.

The stake sale is expected to attract strong interest as the company has
Book Now
sovereign backing.

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7/14/22, 12:50 PM ntpc: NTPC aims to raise Rs 5,000 crore via stake sale in green arm - The Economic Times

3. from pre-Covid level

It can also offer certainty to investors on the assurance that its projects will be
backed by secured, long-term power sale agreements. NTPC did not respond to
emailed queries seeking comment.

4. IOC, BPCL, HPCL may post Rs

10,700 cr loss in Q1

According to a stock exchange disclosure by the company on Saturday, NTPC

will hive off 15 of its renewable energy projects into NTPC Green Energy Ltd, a
newly formed entity. The assets being separated have a book value of ₹10,000
crore. Additionally, its 100% stake in NTPC Renewable Energy Ltd is also being
transferred to NTPC Green Energy, which will now be the main vehicle for its
green energy ambitions.

The fair value of assets being transferred could be a multiple of the book value
because several of them are work-in-progress solar or wind projects that are
yet to be commissioned. The potential energy generation capacity of the assets
being transferred is around 2.5 GW.

TOP TRENDING INDUSTRY TERMS

In April, Tata Power NSE -0.05 % sold close to 10% in its arm Tata Power
LPG Cylinder Price Ranveer Singh Quadruplex
Renewables to BlackRock and Mubadala for ₹4,000 crore. The stake sale
Isha Ambani Mukesh Ambani Resigns
valued Tata Power's renewable energy business at ₹35,000 crore.

Tata Power has operational renewable energy generation capacity of around 4

GW. The deal with BlackRock and Mubadala also combines other facets of Tata Most Popular News
Power's renewable energy expansion plans, such as those for battery storage, 1. PM to launch SGX Nifty trade
at GIFT
solar manufacturing and electric vehicle charging. Other groups such as
Reliance NSE 0.41 % and Adani have also created specialised entities for
their green energy plans.

2. Waiting time for employer-

sponsored green cards rises

NMP at Work

Under the government of India's National Monetisation Pipeline (NMP),

various ministries have been assigned targets to raise funds through 3. Centre allays concerns over
$620.7 bn external debt, says
monetisation of assets of public sector undertakings that come under their its share only 21%
fold.

4. Will ITR filing deadline for

FY 2021-22 be extended?
NTPC’s plans — to first carve out its renewable energy assets into a special
Here's what tax experts have
purpose vehicle and, subsequently, sell a stake to raise funds — are to meet to say
those targets.

5. India objects to US
consulate's direct letter to
NTPC, which accounts for one-fourth of India’s electricity generation capacity, Mumbai Port Authority

wants to move swiftly to renewable sources, from its current mainstay of coal-
based power.

During an investor conference call in January, its management said 40-45% of

its capital expenditure will go towards setting up renewable energy projects
for electricity generation. The company plans in excess of Rs 20,000 crore
capital expenditure in the current fiscal year. In the next 10 years, NTPC
expects that 45% of energy generated by it will be through renewable sources.

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