NTPC shares hit a 52-week high of Rs 166.35 in intraday trade on Friday, up 4% on the BSE after ArcelorMittal, Brookfield, and the Canada Pension Plan Investment Board emerged from a dozen entities that expressed interest in buying Green Energy Sector NTPC Green Energy Limited (NGEL).

The stock surpassed the previous high of Rs 166.30 set on April 19, 2022. The stock was up 2% at Rs 163.55 at 9.42 am, while the S&P BSE Sensex was flat at 58,768. NTPC has outperformed the broader market over the past six months, rising 25%, with a 6% gain for the benchmark. The stock has surged 41% in a year, while the S&P BSE Sensex has risen 1.4%.

Expressions of Interest (EoI) for selling a 5% to 10% stake in NGEL were invited in June this year. The thermal power giant aims to sell a minority stake to raise Rs 2,000 crore.

The sale of NGEL’s stake is part of NTPC’s asset monetisation target, which is fixed at Rs 15,000 crore over three years. With the listing of NGEL, NTPC is also looking to trim its stakes in two companies – power trading arm NTPC Vidyut Vyapar Nigam Ltd (NVVN) and North Eastern Electric Power Corporation Ltd (NEEPCO). NTPC acquired a 100% stake in NEEPCO, which the federal government of India earlier owned, in March 2020, contributing to the centre’s divestment target, Business Standard reported.

Under the company’s vision to reach 60 GW of renewable energy capacity by 2032, the financing will help NTPC access growth capital and implement its capacity expansion plans.

“Currently, the company has 2,500 MW of renewable energy operating assets, of which 4,500 MW is under construction. Overall, diversification of the green energy value chain and monetisation through equity sales to strategic investors will also help. Given the ESG matrix, stocks can eventually be reassessed in the medium term,” said brokerage ICICI Securities.

The company continues to implement its long-term plan, targeting a total installed capacity of 130 GW by 2032. “The focus is on increasing renewable energy capacity, and the roadmap is to add 60 GW by 2032. The aim is to divest NTPC’s identified renewable energy assets from NTPC Renewable Energy (NREL) to NGEL and route it through an IPO or strategic investment,” NTPC said in its FY22 annual report.

In addition, the company plans to strengthen its existing businesses in consulting services, power trading and ancillary services. Under its long-term plan, the company aims to have a 25% market share in ancillary services and storage by 2032. It also plans to venture into the hydrogen economy and produce green chemicals (methanol and ammonia) through R&D and collaboration with OEMs/OES, research institutes, etc.