- 11 Jul 2022
- ICICIdirect Research
NTPC transfers ownership of 15 renewable energy assets to renewable subsidiaryNTPC - 174 Change: -2.75 (-1.55 %)
News: NTPC is set to transfer ownership of 15 renewable energy assets to NTPC Renewable energy Ltd (NREL) and transfer 100% equity to NTPC Green Energy Ltd. The networth of the 15 projects to be transferred is at Rs 1364 crore while revenues of the same for FY22 were at Rs 917 crore. The consideration to be received is pegged at Rs 10067 crore either in cash /equity / debt liability and the deal is expected to be closed from 120th day of sale.
Views: The move is a precursor to the value unlocking process in the renewable subsidiary given the management intends to transfer the assets to the subsidiary will be followed by a fund raise for further expansion in the renewables space.The fund raise can be either through a) stake sale to strategic investor or b) float an IPO for the renewable subsidiary. This overall excercise is the right move as company want to reach 60,000 MW of renewable capacity by 2032.