November 13, 2024
New Delhi, India
NTPC Green Energy IPO
NTPC Green Energy, a wholly-owned subsidiary of NTPC Ltd, is gearing up for its initial public offering (IPO) on November 19, 2024. The bidding for this IPO will close on November 22, 2024, marking a significant fundraising exercise for the renewable energy arm of India’s leading state-owned power company.
IPO Details and Price Band
- Price Band: ₹102-109 per share
- Issue Size: Up to ₹10,000 crore, entirely a fresh issue
- Lot Size: Minimum application of 138 shares and multiples thereafter
The IPO does not include any Offer for Sale (OFS) component. Investors can start placing their bids from November 19, while anchor investors can access it a day earlier on November 18.
Shareholder Quotas and Allocation
- Qualified Institutional Buyers (QIBs): 75% of the issue
- Non-Institutional Investors (NIIs): 15% of the issue
- Retail Investors: 10% of the issue
- Employee Quota: ₹200 crore worth of shares with a ₹5 per share discount
- NTPC Shareholder Quota: ₹1,000 crore, no discount
Also Read: Swiggy Shares Debut at ₹420 on NSE, Listing at 8% Premium Over IPO Price
Company Overview
Incorporated in April 2022, NTPC Green Energy focuses on expanding its footprint in solar and wind energy. As of August 31, 2024, the company boasts:
- Operational Capacity: 3,071 MW from solar and 100 MW from wind projects
- Total Portfolio: 14,696 MW, including 2,925 MW of operating and 11,771 MW of contracted projects
- Presence: Solar and wind assets across multiple states, mitigating location-specific risks
Financial Performance
NTPC Green Energy has shown strong financial growth:
- Q1 FY25: Net profit of ₹138.61 crore, revenue of ₹607.42 crore
- FY24: Revenue of ₹2,037.66 crore, net profit of ₹344.72 crore
- Growth Rate: Revenue CAGR of 46.82% from FY22 to FY24, Profit CAGR of 90.75%
Utilization of IPO Proceeds
The funds from the IPO will be allocated towards:
- Investment in NTPC Renewable Energy (NREL)
- Repayment of NREL’s borrowings
- General corporate purposes
Market Sentiment and Grey Market Premium (GMP)
As of the latest update, NTPC Green’s shares are trading at a GMP of ₹9-10, signaling an estimated listing gain of 8-10% over the upper price band. The GMP has declined from ₹25 a day earlier, reflecting varying investor sentiment.
Listing and Book Running Lead Managers
The shares are expected to be listed on BSE and NSE on November 27, 2024. Leading the IPO process are IDBI Capital Markets, HDFC Bank, IIFL Securities, and Nuvama Wealth Management, with Kfin Technologies serving as the registrar.
As the third-largest IPO of 2024, following Hyundai Motors India and Swiggy, NTPC Green Energy’s IPO arrives amid growing interest in renewable energy investments. With a solid operational portfolio and promising financial performance, this IPO could be a significant player in the sector’s growth story.
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