NTPC Green Energy Limited (NGEL), a wholly-owned subsidiary of NTPC, has signed a significant joint venture agreement with Mahatma Phule Renewable Energy and Infrastructure Technology for developing 10 gigawatts (GW) of renewable energy parks and projects across Maharashtra and other Indian states. 

Following the announcement, NTPC’s stock saw a modest increase of 1%, trading at ₹439 per share.

The joint venture aims to boost the production of clean energy, aligning with India’s sustainable development goals.

NTPC’s Strategic Investments and Growth Plans

In addition to the joint venture, NTPC has recently approved substantial investments in its thermal power segment.

The company’s board sanctioned the investment for the Sipat Super Thermal Power Project, Stage-III (1X800 MW), with an estimated project cost of ₹9,790.87 crore.

Moreover, approval was given for Stage II of the project, with a projected cost of ₹11,130.98 crore, reflecting NTPC’s commitment to expanding its thermal power capacity alongside its renewable energy endeavors.

NTPC Green Energy’s IPO Plans and Financial Performance

NTPC Green Energy has also made headlines for filing a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), National Stock Exchange of India (NSE), and BSE.

This move is part of its preparations for an Initial Public Offer (IPO), targeting to raise ₹10,000 crore through the issue of equity shares.

The IPO is expected to further bolster NTPC’s financial strength and facilitate its ambitious growth strategies.

For the quarter ending June 30, 2024, NTPC reported a robust 11% year-on-year (YoY) increase in net profit, amounting to ₹4,511 crore.

The company’s revenue from operations surged by 14% YoY to ₹44,419 crore, while its EBITDA rose 10% YoY to ₹13,081 crore.

The company also saw a 15% YoY increase in its fuel and energy purchases, totaling ₹27,352 crore for the quarter. NTPC’s total installed capacity now stands at an impressive 76,048 MW.

Strong Market Performance and Future Outlook

NTPC’s shares have shown remarkable growth, rising nearly 41% since the beginning of the year and over 83% in the past year.

The company’s strategic investments in both renewable and thermal energy sectors, coupled with its strong financial performance, position it favorably for sustained growth.

The joint venture agreement and upcoming IPO underscore NTPC’s commitment to enhancing its renewable energy portfolio and driving India’s transition to clean energy.