NTPC Green Energy launches joint venture with Maharashtra State Power ahead of IPO debut

A day before its stock market debut, NTPC Green Energy Limited (NGEL) announced a 50:50 joint venture with the Maharashtra State Power Generation Company Limited (MAHAGENCO). This new entity, named Mahagenco NTPC Green Energy Private Limited (MNGEPL), aims to develop, operate, and maintain renewable energy parks in Maharashtra.

The announcement, made on Tuesday, November 26, revealed that MNGEPL will engage in developing and operating renewable energy parks under the Ultra Mega Renewable Energy Power Park (UMREPP) scheme, and will allocate these parks for renewable energy projects.

NTPC Green Energy, a wholly-owned subsidiary of NTPC Ltd, is collaborating with MAHAGENCO, which is owned by the Government of Maharashtra. This strategic partnership was disclosed in an exchange filing after market hours on Tuesday.

IPO Insights

The announcement comes just ahead of NTPC Green Energy’s Initial Public Offering (IPO), which is set to debut on Dalal Street on Wednesday, November 27. The IPO witnessed strong interest from Qualified Institutional Buyers (QIBs) and retail investors. QIBs subscribed 3.32 times the shares offered, while retail investors subscribed 3.44 times the shares available. However, the Non-Institutional Investor (NII) segment saw an 81% subscription of the total shares on offer, according to data from BSE.

Market Reaction

Despite the positive news, NTPC Ltd shares closed 1.90% lower on Tuesday at ₹361.65, down from ₹368.65 at the previous market close. The joint venture disclosure was made after the market session ended.

Investment Details

NTPC Green Energy has invested in the joint venture by subscribing to 50,000 equity shares at a face value of ₹10 per share, marking a significant step in its renewable energy expansion strategy.

For more details on the IPO and NTPC Green Energy's future ventures, stay tuned as the stock market prepares for their debut tomorrow.