According to media reports, NTPC Green Energy Ltd (NGEL), a unit of state-owned power giant NTPC, plans to raise funds through an initial public offering this financial year. NGEL is a wholly-owned subsidiary of NTPC. It had planned to sell NTPC’s 20% stake in NGEL to a strategic investor for Rs 3,000 crore.

The media reports did not disclose the amount of funds raised through the listing. SBI Capital Markets will act as an adviser to NGEL on the listing, the sources said. Three bidders expressed interest in the stake sale proposal, which later fell through.

In March, the Union Cabinet allowed NTPC to invest more than the 30% cap of its net assets in NGEL. According to its 2021-22 annual report, NTPC has a net worth of Rs 1.28 lakh crore. NTPC’s ambitious target is to have 60 GW of renewable energy by 2032.

The Union Cabinet also exempted the NGEL’s investment in NTPC Renewable Energy Ltd and its other joint ventures/subsidiaries, subject to a 15% cap of its net worth beyond the monetary cap of Rs 5,000 crore to Rs 7,500 crore towards achieving a target of 60 GW of renewable energy capacity by parent company NTPC Ltd.