NTPC Gains On Report Of Talks To Sell Stake In Renewables SPV To Raise Funds

Shares of NTPC Ltd. rose on a report of talks to sell stake in its renewables special purpose vehicle to raise funds.

The state-owned power generator held preliminary discussions with Abu Dhabi-listed TAQA, Malaysia’s Petronas and Canadian pension fund CPP Investment Board, among others, with relation to fundraising for clean energy platform, the Economic Times reported citing people aware of the development.

NTPC, the report said, aims to carve out its renewable energy assets into a special purpose vehicle and subsequently raise funds through stake sale. NTPC, TAQA, Copenhagen Infrastructure Partners, Brookfield, KKR and CPPIB and Petronas did not respond to the queries of the newspaper.

NTPC did not immediately respond to BQ Prime’s emailed queries.

On July 9, NTPC had informed exchanges of its plans to transfer 15 of its renewable energy projects into a new entity—NTPC Green Energy. The net worth of the assets is Rs 1,364.74 crore, which is 1.01% of the net worth of NTPC. The book value of the assets is Rs 10,066.99 crore.

Shares of NTPC rose as much as 2.3% as of 9:50 a.m. on Wednesday. The stock is on course to extend gains for the third session. The trading volume was nearly thrice the 30-day average volume. NTPC is the top gainer on the Nifty 50.

Of the 27 analysts tracking the company, 25 maintain a ‘buy’ and two suggest a ‘hold’, according to Bloomberg data. The average of the 12-month price target implies an upside of 14.1%.