NTPC Shares Gain 3% As The Co. Begins Fund Raising For Its Clean Energy Platform

Shares of power generation and distribution entity NTPC in early trade on August 17, 2022 zoomed up to 3% to day's high price of Rs. 163.5. Considering the last traded price of Rs. 163.2, the stock is just a tad away from its 52-week high of Rs. 166.35.

Reportedly, NTPC has approached global utilties and energy companies, pension and infrastructure-focussed funds as NTPC looks to start fund raising for its clean energy platform. NTPC's plans to first carve out its renewable energy assets into a special purpose vehicle and sell a stake subsequently to raise funds will form part of the government's National Monetisation Pipeline (NMP). Preliminary discussions have been held with Abu Dhabi-listed TAQA, Malaysia's state-owned Petronas, Canadian pension fund CPP Investment Board (CPPIB), Brookfield, KKR & Company and Copenhagen Infrastructure Partners among others to gauge their interest.

As per the brokerage firm ICICI Direct, this has been positive for the company that last month told the exchanges that it plans to hive off 15 of its renewable energy projects into NTPC Green Energy Ltd, a newly formed entity. The assets being separated have a book value of Rs. 10,000 crore. Additionally, its 100% stake in NTPC Renewable Energy Ltd is also being transferred to NTPC Green Energy,
which will now be the main vehicle for its green energy ambitions.

NTPC is a large cap company engaged in generation of electricity. The Company is engaged in generation and sale of bulk power to state power utilities.