Thu Sep 26 01:10:10 UTC 2024: ## India’s Government Pushes State-Run Energy Companies to Go Public with Renewable Businesses

**New Delhi:** The Indian government has urged state-owned energy companies to consider listing their renewable energy subsidiaries on the stock market, aiming to unlock value and raise funds for the rapidly growing sector. This move comes amid rising interest in renewable energy and a strong market for IPOs.

The Department of Investment and Public Asset Management (DIPAM) has identified several potential companies for IPOs, including NTPC Green Energy Ltd, which has already filed draft papers for a ₹10,000 crore IPO, and SJVN Green Energy Ltd. Solar Energy Corporation of India (SECI) is also expected to launch a public offering within the next two years.

The government believes that IPOs will fetch greater value than selling assets to private entities, which it views as a one-time transaction. Listing renewable energy businesses is seen as a way to attract investment in a sector that is facing funding challenges due to the carbon footprint of traditional energy companies.

Several companies, including SJVN Ltd, NHPC, and NHPC Renewable Energy Ltd, have confirmed that they are considering IPOs for their green energy arms. However, experts advise caution, noting that the market is currently driven by liquidity and that private sector companies often have better execution capabilities and financials.

Despite these concerns, there is a strong appetite for green energy IPOs among institutional and retail investors. Mutual fund systematic investment plans are directing significant funds towards IPOs, while investors are increasingly seeking ESG (environmental, social, and governance) investments to diversify their portfolios.

The government believes that going public will allow them to monetize assets over time and derive more value from their renewable energy holdings. However, the challenges faced by these companies, including delays in project commissioning due to issues such as land acquisition and infrastructure, will come into focus as they seek to enter the public market.

The shift towards renewable energy is also impacting the market, with discoms increasingly looking for solutions to address non-solar hours through storage. This is driving the need for more sophisticated solutions beyond basic solar and wind projects.

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