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On February 12, 2025, NTPC Green Energy Ltd (NGEL; ‘Crisil AAA/Stable/Crisil A1+’) announced the signing of a share purchase agreement (SPA) by its joint venture, ONGC-NTPC Green Private Ltd (ONGPL). The SPA has been signed with the National Investment and Infrastructure Fund (NIIF), BII South Asia Renewables Ltd, British International Investment Plc (BII), CDC India Opportunities Ltd and Green Growth Equity Fund to acquire a 100% equity stake in Ayana Renewable Power Private Ltd (Ayana) by ONGPL for an enterprise value of around Rs 19,500 crore. Out of this, ONGPL will be paying around Rs 6,600 crore as equity consideration, which will be funded equally by NGEL and ONGC Green Ltd (OGL).

Ayana has a total capacity of 4.1 gigawatt (GW) out of which around 1.58 GW is operational solar assets, around 0.34 GW is operational wind assets, while the balance is under construction. Ayana’s portfolio is backed by off-takers such as Solar Energy Corporation of India, NTPC Ltd (‘Crisil AAA/Stable/Crisil A1+’), Indian Railways, and Gujarat Urja Vikas Nigam Ltd.

NGEL shall be funding its portion of equity requirement of Rs 3,300 crores primarily through the funds raised during the initial public offering (IPO) in November 2024 and internal accruals etc. The management has further articulated that no corporate guarantee shall be provided to ONGPL, and the debt shall remain ring-fenced.

Crisil Ratings believes that this acquisition by ONGPL will not have any material impact on the overall credit risk profile of NGEL which centrally factors the strong parentage of NTPC Ltd. However, Crisil Ratings will continue to evaluate the impact of this transaction on the business profile of NGEL as more information appears. This acquisition will support NGEL’s vision of having a renewable energy capacity of 60 GW by fiscal 2032.

NGEL is a subsidiary of NTPC Ltd with operational renewable energy capacity of around 3.6 GW. During the first nine months of fiscal 2025, NGEL reported operating income of Rs 1,587 crore, operating earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 1,355 crore and profit after tax (PAT) of Rs 241 crore as compared to Rs 1,454 crore, Rs 1,307 crore and Rs 261 crore, respectively, during the same period last fiscal.

On November 18, 2024, NGEL and OGL formed a 50:50 joint venture, ONGPL, to explore and set up renewable energy projects through greenfield developments and acquisitions.

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