ArcelorMittal, Brookfield and Canada Pension Plan Investment Board are among over a dozen entities that have evinced interest in buying stake in NTPC Green Energy Ltd, according to sources.
NTPC Green Energy Ltd (NGEL) is a wholly-owned subsidiary of state-owned power giant NTPC Ltd. The expression of interest (EoI) for stake sale of 5 to 10 per cent in NGEL was invited in June this year.
“The NTPC has received 13 bids for divesting up to 5-10 per cent stake in the NGEL. The EoI for the stake was issued around June. The bidders include ArcelorMittal, Brookfield, and Canada Pension Plan Investment Board. The winners will be finalised by the end of the month (September)”.
NTPC expects the valuation of the NGEL to be around Rs 2,000 crore.
The sources also informed that the IPO (initial public offer) planned for NGEL will now come in FY24 (next fiscal).
The company has not decided yet on the quantum of stake to be offloaded eventually and is looking initially at a 5 to 10 per cent stake sale.
The company can eventually go up to 26 per cent stake sale in NGEL.
The existing renewable energy capacity of the company is 2,500 MW while another 4,000 MW is under construction.
NTPC has planned to raise Rs 10,000 crore to 15,000 crore from asset monetisation in the next three years.
Regarding coal imports, the sources said that the company has imported 10 million tonne so far this fiscal and may need to import another couple of million tonne if power demand goes up.
Considering that power demand is rising since last week and there would be demand coming in for the festival season (beginning in September end), NTPC is constantly reviewing the situation, as per the sources.
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