NTPC Green Energy launches JV with Maharashtra State Power ahead of stock market debut tomorrow

NTPC Green Energy Limited (NGEL) has incorporated a 50:50 joint venture (JV) with Maharashtra State Power Generation Company Limited (MAHAGENCO) to develop, operate and maintain renewable energy parks in the state of Maharashtra, according to the BSE filing on Tuesday, November 26. 

The joint venture is named Mahagenco NTPC Green Energy Private Limited (MNGEPL), as per the exchange filing.

“MNGEPL will be engaged in the business of developing, operating and maintaining Renewable Energy Park(s) in Maharashtra under UMREPP and allot Park(s) for development of Renewable Energy Project(s),” said the company in an exchange filing on Tuesday.

The renewable energy firm NTPC Green Energy is a wholly-owned subsidiary of the State-run energy giant NTPC Ltd. MAHAGENCO, or Maharashtra State Power, is owned and controlled by the Government of Maharashtra. 

This development of a joint venture comes ahead of the listing date of NTPC Green Energy's initial public offering (IPO), set to hit Dalal Street on Wednesday, November 27.

The IPO received full booking from the Qualified Institutional Buyers (QIBs) and retail investors segment in the three days of public subscription. The QIBs subscribed 3.32 times the shares offered, the retail investors subscribed most to the public offer, coming in at 3.44 times the shares available. However, the Non Institutional Investor (NII) segment was subscribed 81 per cent of the total shares on offer, according to data collected from BSE. 

NTPC Ltd shares closed 1.90 per cent lower after Tuesday's market session at ₹361.65, compared to ₹368.65 at the previous market close. The disclosure of the new joint venture was filed with the exchanges after market operating hours on Tuesday. 

The company also disclosed that NTPC Green Energy has subscribed to 50,000 equity shares at a face value of ₹10 per share as a cost of acquisition of the shares of the joint venture. The renewable energy company holds 50 per cent equity in the newly incorporated private company.