NTPC Transfers 15 Renewable Energy Assets to NTPC Green Energy; stock market zooms ~ 2%

NPTC Limited has advised that it has approved the transfer of 15 renewable energy assets to NTPC Green Energy Limited, a wholly owned subsidiary of NTPC, through a business transfer agreement dated July 8, 2022.

In addition, it has also decided to transfer 100% of the stake held in NTPC Renewable Energy Limited, a wholly-owned subsidiary of NTPC, to NGEL through a share purchase agreement dated July 08, 2022.

Revenues from 15 transferred RE assets amount to Rs 917.46 crore for FY 2022, or 0.68% of NTPC’s revenue of Rs 1,34,994.31 crore (on a consolidated basis) as of March 31, 2022.

The net worth of 15 RE assets is Rs 1,364.74 crore as of March 31, 2022, i.e. 1.01% of the net worth of NTPC i.e. Rs 1,35,373.74 crore (attributable equity owners) as of March 31, 2022.

NREL’s revenue proposed to be transferred is Rs 0.78 crore for FY 2022, or 0.0006% of NTPC’s revenue of Rs 1,34,994.31 crore (on a consolidated basis) as of March 31 Net worth of NREL is Rs. 727.78 crore as of March 31, 2022, i.e. 0.52% of Networth of NTPC i.e. Rs1 39,134.15 crore as of March 31, 2022.

The sale/transfer of assets must be completed within 120 days from the date of execution of the agreement.

The consideration for the transfer of 15 RE assets has been set at Rs 10,066.99 crore based on the book value as per the audited financial statements as at 31 March 2022, payable by a combination of cash/equity shares/debts .

NTPC Ltd is currently trading at Rs145.85 up Rs2.35 or 1.64% from its previous close of Rs143.50 on BSE. The certificate opened at Rs144.35 and hit the intraday high and low of Rs146.95 and Rs143.95 respectively.