NTPC Green to SGEL: Govt puts listing of CPSEs' green units in fast lane

NTPC Green Energy, SGEL, NLC India Green Energy may see IPOs by FY25-end

The Union government is planning to list the subsidiaries of many central public sector enterprises (CPSEs) this financial year.

These include NTPC Green Energy, SJVN Green Energy Ltd (SGEL), and NLC India Green Energy, according to a senior finance ministry official. 

Confirming the proposed listing of at least three green subsidiaries of CPSEs, the official said the move would encourage companies to operate more professionally and achieve higher levels of efficiency. SBI Life, SBI Cards, and Mangalore Refinery and Petrochemicals are some of the listed subsidiaries of public-sector companies. 

NTPC Green is planning to raise Rs 10,000 crore through an initial public offering (IPO) by November. The IPO will involve a fresh issue of equity shares with no offer-for-sale (OFS) component. 

The company intends to use Rs 7,500 crore of the proceeds to repay or prepay loans, while the rest will be for general corporate purposes. 

NTPC Green is aiming to reach a capacity of at least 15 Gw by FY27, with 85 per cent coming from solar energy and the rest from wind. 

The company’s revenue increased from Rs 170.60 crore in FY23 to Rs 2,028.69 crore in FY24, while its profit grew from Rs 174.44 crore in FY23 to Rs 370.47 crore in FY24. 

“The IPO may raise Rs 5,000-6,000 crore, featuring a mix of fresh shares and an offer for sale. The price band is likely to be Rs 100-120 per share, depending on market conditions at the time of the listing,” according to estimates from brokerage firm ICICI Direct. 

The Centre may exceed its dividend target of Rs 56,260 crore from CPSEs set for FY25 and is likely to ring up around Rs 65,000 crore, according to a senior government official. This does not include dividends from nationalised banks and financial institutions. As of October 21, the Centre collected Rs 28,913 crore as dividend and other investment, accounting for over 50 per cent of the Budget Estimate for FY25. Against a Revised Estimate of Rs 50,000 crore, dividend from CPSEs yielded the Centre Rs 63,749 crore in FY24, the highest in any financial year. 

“The IPO proceeds will be used for NGEL’s green and energy transition projects, including initiatives in green hydrogen and energy storage technologies,” the official added. SGEL has assets of approximately 3.6 Gw in the pipeline, expected to be commissioned in two years. The company is projected to spend over Rs 20,000 crore as capital expenditures in FY25, with more than Rs 15,000 crore for renewable capacity expansion. 

“The energy firms, whether focused on traditional sources or already engaged in green energy, are further diversifying into additional green sectors, including wind, solar, and hydrogen,” the official stated.   

IRCTC to get Navratna status by March-end  

The government is planning to upgrade the Indian Railway Catering and Tourism Corporation (IRCTC) to Navratna status from Miniratna I by the end of this financial year, said a senior government official. Currently, there are 13 Maharatna and 25 Navratna CPSEs. Introduced in 1997, the Navratna scheme aims to identify CPSEs with competitive advantages and support them in becoming global leaders.