Shares of NTPC Limited increased by more than 1% to Rs 447.75 on 1 October after the company announced that its subsidiary NTPC Green Energy Ltd (NGEL) signed a Memorandum of Understanding (MoU) with the Rajasthan Government for a 25 gigawatt (GW) renewable energy project. 

Earlier last week, the company announced that NGEL and Mahatma Phule Renewable Energy and Infrastructure Technology Ltd. (MAHAPREIT) entered into a joint venture agreement to develop 10 GW of renewable energy parks in Maharashtra or any other state in India.

With its highly anticipated Rs 10,000 crore initial public offering (IPO), the business filed a draft red herring prospectus (DRHP) with SEBI on 19 September. This IPO is expected to be among the largest in India in 2024, second only to Hyundai. There won’t be any promoter firms selling any of the new equity shares that will be issued in the public offering.

Up to 10% of the proceeds from the IPO would be set aside for NTPC Ltd.’s current shareholders. This quota will give investors who held NTPC shares on the date of the red herring prospectus (RHP) filing the opportunity to partake.

The IPO’s proceeds will go toward funding NTPC Green Energy’s current and upcoming initiatives, such as its investments in green ammonia, green hydrogen, and solar energy.

Following the May plan, the company’s management hopes to leverage the listing, which is scheduled to begin by the end of 2024, to generate substantial value. 

Since Life Insurance Corporation’s Rs 21,000 crore initial public offering (IPO) in May 2022, this Rs 10,000 crore offering will be the largest by a PSU. 

However, at 11:30 am, the shares of NTPC were trading flat at its previous closing price of Rs 443.20 on NSE.

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