Table of Content
- Why NTPC Seeks Renewable Unit Investor Before Going Public (IPO)?
- AIM of NTPC.
- Upcoming NREL Renewable Power Projects.
- NTPC Research Report on Renewable Energy assets
- The current installed capacity of NTPC.
- Is it reasonable to buy NTPC stock in 2022?
- What is the Market Cap of NTPC?
Why does NTPC Need a Renewable Unit Investor for IPO?
The country’s largest power generator, NTPC, is seeking a partner to help it plan the initial public offering (IPO) of its renewable energy subsidiary National Renewable Energy Lab (NREL).
According to officials aware of the developments. It will start looking for a partner from April 2022, which would help increase the value of its IPO. Although other sme-ipos are lined up in 2022, the spark of issuing NTPC’s IPO is different from other ipos.
The reason could be the popularity of NTPC as it is counted as India’s dominant power major with a presence in the entire value chain of power generating business.
If we look into the stock market research, India is the third-largest country that emits greenhouse gases (GHG) globally.
That affects its climate and threatens to reverse the development gains made in recent years. NTPC Seeks renewable units to produce 40 per cent of its total power from non-fossil fuels by 2030.
NREL has doubled its target for clean power generation to 60 gigawatts by 2032.
Experts recommend that NREL bear significant equity money to meet the target, and bringing investors on board would be beneficial.
AIM of NTPC
NTPC is India’s most significant power utility with an introduced limit of 67,907.5 MW. It plans to turn into a 130 GW company by 2032. NTPC was established in 1975. NTPC aims to be the world’s biggest and best power major.
NTPC has exhaustive Rehabilitation and Resettlement and CSR arrangements incorporated with its core business of setting up power projects and generating power.
NTPC focuses on creating dependable power at cutthroat costs in a supportable way by upgrading the utilization of various energy sources with imaginative eco-accommodating advancements.
Subsequently, NTPC adds to the country’s monetary improvement and upliftment of the general public.
Upcoming NREL Renewable Power Projects
- This solar power park is the most ambitious renewable energy project. NREL is working on its mega solar power project in Khavda of Gujarat. With the capacity of 5 Gw of solar energy generation.
- NREL is also looking for other technologies, including solar, wind, biomass, and hydropower. It is also interested in exploring ways to generate clean energy from green methanol and green hydrogen.
- As per reports, NREL is looking to pilot a green hydrogen production project at Vindhyachal thermal power plant in Madhya Pradesh.
NTPC Research Report on Renewable Energy assets
NTPC is very much situated to benefit from the predictable incomes generated by thermal assets and the development of sustainable power.
An AP/BV proportion of 1.5x for warm ventures brings about a valuation of Rs. 133,000 crore (close to current market capitalization) and no incentive for huge renewable energy (RE) growth plans.
Aside from settling ESG issues, NTPC hopes to market >5GW each year to deliver an 11 per cent CAGR in independent directed values.
RE limit focuses of 15GW/60GW by FY24E/FY32E (NTPC won 15% of RE offers in FY21) would make extensive worth.
Frequently Asked Questions about NTPC
The current installed capacity of NTPC
The company’s installed capacity is 67,907.5 MW (which includes JVs) 7 gas-based, own stations include 24 coal-based, 1 Wind 13 Solar, 1 Hydro, and 1 Small hydro plant.
Under the Joint Venture, NTPC has 9 coal-based, 13 renewable energy projects, and 4 gas-based Projects.
Is it reasonable to buy NTPC stock in 2022?
We are happy to say that the Indian stock market is currently trading at a very low price to its intrinsic value. Sooner or later, people will realize the fact that power stocks like NTPC are like annuity income for a long-term investor.
If one buys PNB or Bank of Baroda with a one-year time horizon, the investors will make a lot of money. I would still advise people to hold on to their stocks until the market comes down and then buy some more for the long term.
What is the Market Cap of NTPC?
NTPC, composed in the year 1975, is a large-cap company with a market cap of Rs 117475.11 Crore and is operating in the power sector.
Several well-known global companies, including energy companies, public companies and pension funds, have made significant contributions to India’s renewable energy sector.
The government wants more international companies to participate in achieving the clean energy goal.
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