State-run NLC and SJVN will likely list their green subsidiaries–NLC India Green Energy (NIGEL) and SJVN Green Energy (SGEL)–in 2025 through fresh equity offerings in 2025 to fund the expansion of their renewable energy projects, sources told FE.
One of these issues could materialise in the first half of the year.
The IPOs would result in equity dilution of around 15% by the promoters, the sources added.
“Next year, we will have more than one green IPO from state-run companies that carved out green assets into separate companies. NLC India Green and SJVN Green are leading candidates,” a senior official said.
Other potential listings in the coming years include NHPC Renewable Energy, CIL Navikarniya Urja and ONGC Green.
NTPC Green Energy (NGEL), the subsidiary of state-run power major NTPC, is the first one from this new generation of CPSE subsidiaries to get listed next month with its `10,000-crore IPO. NTPC is on track to build up green capacity of 60 GW by 2032 and NTPC Green Energy is its flagbearer in the renewable energy journey with an operational capacity of over 3.4 GW and 26 GW in the pipeline.
As a first initiative, NIGEL has signed the power purchase agreement (PPA) with Gujarat Urja Vikas Nigam (GUVNL) for the proposed 600 MW solar power project at Khavda Solar Park in Bhuj. The entire power from the project will be procured by GUVNL with the PPA tariff for the electricity from the project at `2.705/kWhr.
The annual generation of electricity is set at 1,577.88 MU (million unit), with a cumulative electricity generation of 39.447 BU (billion unit) in its lifetime.
SGEL has a target of 25,000 MW of installed capacity by 2030 and 50,000 MW by 2040. The company has entered into a long-term agreement with Greenko Group-promoted AM Green Ammonia to supply 4,500 MW of carbon-free energy to its green ammonia facilities.
SJVN is expected to incur `12,000-crore capex in FY25, most of which is expected to be incurred for renewable capacity addition entirely through SGEL.
“Given the huge funding requirement of green energy companies, these IPOs will give fresh avenue to the promoters to infuse capital for business expansion,” the official said.
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