NTPC Green Energy, a subsidiary of NTPC Ltd, will launch its IPO on November 19. The Rs 10,000-crore IPO will run until November 22. The price band for NTPC Green Energy’s IPO is set between Rs 102 and Rs 108 per share.
Anchor investors will be able to participate in the IPO on November 18.
The NTPC Green Energy IPO will be India’s third-biggest stock offering this year, after Hyundai Motor India and Swiggy.
NTPC shareholders, as of the RHP filing date, will be eligible for the IPO’s shareholders category.
NTPC Green Energy IPO: What Should Investors Do To Raise IPO Allotment Chance
The NTPC Green Energy IPO includes a shareholders’ quota; holding at least one NTPC share qualifies investors.
ICICI Securities Recommends ‘Buy’ on NTPC Shares, Highlights Growth Potential of NTPC Green Energy
ICICI Securities has given a ‘buy’ rating to the shares of NTPC. NTPC Green Energy (NGEL), a fully owned NTPC subsidiary, aims to debut on exchanges with its DRHP filing.
“We analyse NGEL’s business, look at its valuation metrics and evaluate key concerns. NGEL has 3.2GW operational capacity, 12GW under construction, and 11GW in pipeline, targeting utility-scale and captive RE projects. We expect the return ratios for captive to be higher than utility-scale projects,” ICICI Securities said in a note.
NTPC Aims for 60 GW Renewable Energy Capacity by FY32, ICICI Securities Retains ‘BUY’ Rating
NTPC targets 60 gigawatts (GW) of renewable energy (RE) capacity by FY32.
NGEL estimates revenue of Rs 11,700 crore and EBITDA of Rs 9,500-10,000 crore for its portfolio.. EV to EBITDA remains the best valuation metric to analyse NGEL’s RE portfolio. Retain BUY and TP of Rs 495 on NTPC,” ICICI Securities stated.
The IPO comes as NTPC, traditionally reliant on thermal power, seeks to diversify into other energy sectors.
Bathini added, “With green energy in focus, investors will definitely want a slice of this pie.”
NTPC Green Energy to Utilize Rs 7,500 Crore to Boost Renewable Portfolio and Repay Borrowings
NTPC will use Rs 7,500 crore from the fresh issue to invest in its subsidiary, NTPC Renewable Energy Limited.
Promoted by NTPC Ltd, NTPC Green Energy is, as of June 30, 2024, the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity. Additionally, it leads in power generation for Fiscal 2024, according to a CRISIL Report referenced in the DRHP.
As of June 30, 2024, NTPC Green’s “Portfolio” consisted of 14,696 MWs including 2,925 MWs of operating projects and 11,771 MWs of contracted and awarded projects. Additionally, it has 10,975 MWs of “Capacity under Pipeline”, aggregating to 25,671 MWs together with its Portfolio.
NTPC Green Energy Expands Renewable Portfolio with 37 Solar and 9 Wind Projects Across Multiple States
The company’s renewable energy portfolio includes both solar and wind power assets, with a presence across multiple locations in more than six states. This widespread geographic distribution helps, in turn, mitigate the risk of location-specific generation variability, as highlighted in a CRISIL Report referenced in the DRHP.
As of June 30, 2024, NTPC Green had 15 off-takers across 37 solar projects and 9 wind projects and are in the process of constructing 31 renewable energy projects in 7 states consisting of 11,771 MWs Contracted and Awarded. It also had 2,925 MWs operating across 14 solar projects and 2 wind projects.
As of August 31, 2024, NTPC Green Energy’s operational capacity reached 3,071 MW from solar projects and 100 MW from wind projects, spread across six states. Furthermore, the company is strategically focused on expanding its portfolio of utility-scale renewable energy projects. In addition to this, NTPC Green Energy is also dedicated to meeting the needs of public sector undertakings (PSUs) and Indian corporates, thereby diversifying its client base and strengthening its market position.
NTPC Green Energy Reports Strong Growth in Revenue and Profit for FY 2024
NTPC Green Energy’s revenue from operations has grown at a CAGR of 46.82 per cent from Rs 910.42 crore in Fiscal 2022 (on a special purpose carved-out basis) to Rs 1,962.60 crore in Fiscal 2024 (on a restated basis). Profit after tax grew at a CAGR of 90.75 per cent from Rs 94.74 crore in Fiscal 2022 (on a special purpose carved-out basis) to Rs 344.72 crore in Fiscal 2024 (on a restated basis).
For the three months period ended June 30, 2024 revenue from operations and profit after tax stood at Rs 578.44 crore and Rs 138.61 crore, respectively, on a restated basis.
IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited are the book-running lead managers to the issue and KFin Technologies Limited is the registrar to the offer.
