NTPC, according to the reports, plans to raise Rs 50 billion by selling a stake in a recently established green energy division. SBI Capital Markets has been hired by the state-owned power generation company to advise on the sale process, which is set to formally begin in October. Kuwait and Abu Dhabi's sovereign wealth funds, as well as Canadian pension funds, are located in the Middle East.
After the capital injection, NTPC wants to keep the majority stake in the arm. As the company is backed by the government, the sale of the stake is expected to generate significant interest. In addition, it can give investors a sense of security by ensuring that their projects are backed by secure, long-term power sales agreements. NTPC reportedly did not respond to questions.
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