NTPC Ltd., India’s largest electricity producer, is seeking a strategic investor in its renewables business prior to taking the unit public next year, said a company official with knowledge of the matter.
NTPC Renewable Energy Ltd., a fully owned subsidiary of the New Delhi-based firm, plans international roadshows in the fiscal year starting April to find a partner and hopes an investor will boost the value of the subsequent IPO, said the official, who asked not to be identified because the plans are still private.
India is the world’s third-biggest emitter and remains deeply reliant on coal, but the government plans to more than quadruple renewable power capacity by the end of the decade to meet climate commitments. NTPC this year nearly doubled its clean power installation target to 60 gigawatts by 2032.
“The company is going to need a significant amount of equity money” to meet the target, said Rupesh Sankhe, vice president at Elara Capital India Pvt. in Mumbai. “Bringing in equity partners is a natural choice.”
Global firms — from private equity players to pension funds to energy giants — have dominated funding for India’s renewables buildout so far and the nation is counting on overseas financing to meet its climate goals.
–With assistance from Alpana Sarma.
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NTPC Ltd., India’s largest electricity producer, is seeking a strategic investor in its renewables business prior to taking the unit public next year, said a company official with knowledge of the matter. NTPC Renewable Energy Ltd., a fully owned subsidiary of the New Delhi-based firm, plans international roadshows in the fiscal year starting April to find a partner and hopes an investor will boost the value of the subsequent IPO, said the official, who asked not to be identified because the plans are still private. India is the world’s third-biggest emitter and remains deeply reliant on coal, but the government plans to more than quadruple renewable power capacity by the end of the decade to meet climate commitments. NTPC this year nearly doubled its clean power installation target to 60 gigawatts by 2032. “The company is going to need a significant amount of equity money” to meet the target, said Rupesh Sankhe, vice president at Elara Capital India Pvt. in Mumbai. “Bringing in equity partners is a natural choice.” Global firms — from private equity players to pension funds to energy giants — have dominated funding for India’s renewables buildout so far and the nation is counting on overseas financing to meet its climate goals. –With assistance from Alpana Sarma. (What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.) Download The Economic Times News App to get Daily Market Updates & Live Business News.