Indian State-run Firms Gearing Up for Green Energy IPOs?

As India advances towards its ambitious renewable energy targets, state-run companies NTPC, ONGC, and SJVN are positioning themselves at the forefront of this green transition. In a strategic move to capitalize on the burgeoning clean energy sector, these energy giants are rumoured to be preparing to launch initial public offerings (IPOs) for their green energy subsidiaries.

India's commitment to fighting climate change is evident in its goal to lower carbon intensity by more than 45% by the end of this decade and to incorporate 50% renewable energy into its power mix. To achieve this, the country has set an aggressive target of 500 GW renewable energy capacity by 2030, en route to net-zero carbon emissions by 2070. These objectives form the backdrop of the IPOs planned by the state-run behemoths.

Leading the charge, NTPC Green Energy Ltd, a subsidiary of NTPC, India's largest power conglomerate, has filed draft papers to raise a seminal ₹10,000 crore through an IPO. The company intends to use these funds to create a renewable energy ecosystem that includes solar, green hydrogen, and green ammonia. With a vision to build a 60 GW renewable portfolio over the next decade, NTPC Green Energy's IPO is one of the most anticipated in the sector, expecting to go public in October or November 2024.

ONGC, another major player in the energy sector, is steering its green subsidiary, ONGC Green Energy, toward a focus on cutting-edge renewable initiatives such as biofuels, green hydrogen, and carbon capture. The company has set an ambitious target to achieve 10 gigawatts of green energy by 2030. Their renewable energy mix aims for a 70% contribution from solar and a 30-40% share from wind and hydrogen sources.

SJVN Green Energy Ltd, the green subsidiary of SJVN Ltd, is also gearing up to leave a mark on the renewable energy landscape. It has set a goal to achieve an installed capacity of 25,000 MW by 2030, demonstrating a robust commitment to clean energy. Noteworthy among its initiatives is the securement of solar power projects in Maharashtra and a joint venture to develop various renewable energy projects, including floating solar power, in Assam.

The series of IPOs from these state-run companies underscore a national move towards green energy. This shift not only aligns with global trends but also promises to open up new investment avenues for those looking to contribute to sustainable development while potentially gaining from India's green energy progression. As these subsidiaries gear up for their IPOs, investors and market watchers are paying close attention to these emerging opportunities in the renewable energy sector.