NTPC Corporation plans to raise $2 billion
Indian corporation NTPC announced plans to conduct an IPO of its three divisions. In the course of the initial public offering it is planned to raise about 2 billion dollars. The company’s management wants to put on the market papers of the division that deals with renewable energy sources; its IPO should take place already this year. In 2024, NTPC will also publicly float shares of the division that sells electricity and hydroelectric power. In addition, the corporation intends to reduce its stake in the power supply joint venture with the Steel Authority of India.
NTPC, an energy state-owned corporation, is engaged in power generation and is developing related segments of its business. It provides engineering, project development, construction and management services for power plants. In addition, NTPC explores oil and gas deposits and mines coal. The company is the market leader in India, its generating capacity is more than 65 thousand MW, more than 25 billion units of electricity are generated here every month.
NTPC owns 55 power plants, of which 24 are coal-fired, 11 are solar, one is wind, 2 are hydropower and 7 are combined-fuel plants that run on gas and liquid fuel. Besides, the company has 9 coal complexes and NPPs as joint ventures.
The corporation was established by the Indian government in 1975, and now the state owns nearly 55% of the shares. In 2004 NTPC made initial public offerings on two major stock exchanges of the country – BSE in Bombay and NSE in Mumbai. On the first day of trading, the company ranked third in India in terms of capitalization.
Since 2005, the corporation has adopted a new development strategy with a special focus on renewable energy sources, primarily hydro and nuclear power.
NTPC actively cooperates with other state-owned companies in the country. They organize joint ventures to provide power to steel mills and invest in mining. In addition to assets in India, the corporation owns a controlling stake in a coal mine in Mozambique. Coal-fired thermal power plants are also under construction in Sri Lanka and Bangladesh.
According to the long-term strategy, by 2032 the capacity of the company should reach 128 thousand MW. NTPC is pushing hard toward its goal by expanding its power generation. Several large RES facilities are under construction. In addition, the corporation is trying to reduce the share of fossil and coal mining.
NTPC employs more than 24,000 people and ranks second among the world’s 250 largest power producers.