After NTPC Green Energy’s upcoming ₹10,000 crore IPO in late 2024, SJVN Green Energy Ltd (SGEL) is expected to launch its own public offering to raise capital for expansion, according to sources. SGEL aims to achieve 25,000 MW of installed renewable capacity by 2030, with a long-term goal of 50,000 MW by 2040. The company has also partnered with Greenko Group’s AM Green Ammonia Holdings to supply 4,500 MW of carbon-free energy for green ammonia production.
As companies reinvest earnings into green energy initiatives, equity stake monetization in green subsidiaries is emerging as a key financing tool. “SGEL’s IPO is likely to hit the market following NTPC Green’s IPO,” a senior official stated.
SJVN is projected to spend ₹12,000 crore in FY25, primarily on renewable energy projects, with SGEL spearheading the expansion. Meanwhile, NTPC Green Energy Ltd, a subsidiary of NTPC, is advancing NTPC’s goal of reaching 60 GW of renewable energy capacity by 2032. NTPC Green currently has over 3.4 GW in operation and another 26 GW in development.
The Department of Investment and Public Asset Management is supporting the energy sector’s public sector enterprises (CPSEs) in creating subsidiaries to capitalize on the favorable 15% corporate tax rate for new manufacturing firms set up by March 2024. In alignment with India’s Net Zero target by 2070 and its aim of 500 GW of renewable capacity by 2030, CPSEs are accelerating renewable energy projects and consolidating assets within their green subsidiaries.
