November 18, 2024
New Delhi, India
NTPC Green Energy IPO
The much-anticipated NTPC Green Energy IPO is set to launch on November 19, 2024, and will be open for public subscription until November 22, 2024. As a wholly-owned subsidiary of NTPC Ltd, this renewable energy company aims to raise ₹10,000 crore through a fresh issue of 92.59 crore equity shares. Here’s a detailed breakdown of the key information and expectations from this IPO.
Key Details of NTPC Green Energy IPO
- IPO Dates:
- Opening Date: November 19, 2024
- Closing Date: November 22, 2024
- Price Band:
- Set at ₹102-108 per share.
- At the upper price band, the company expects to raise a total of ₹10,000 crore.
- Lot Size and Minimum Investment:
- Lot Size: 138 shares.
- Minimum Investment: ₹14,904 for retail investors.
- Issue Structure:
- Qualified Institutional Buyers (QIBs): 75% of the issue.
- Non-Institutional Investors (NIIs): 15% of the issue.
- Retail Investors: 10% of the issue.
- The IPO is entirely a fresh issue with no Offer for Sale (OFS) component.
- Objective of the IPO:
- Proceeds will be invested in NTPC Renewable Energy Ltd (NREL), a wholly-owned subsidiary of NTPC Green Energy.
- Additional funds will be used for general corporate purposes.
- Allotment and Listing Dates:
- Allotment Date: Expected by November 25, 2024.
- Listing Date: Shares are anticipated to list on BSE and NSE on November 27, 2024.
- Demat Credit and Refunds: Share allotment credits to eligible investors and refund initiation will occur on November 26, 2024.
- Book Running Lead Managers:
- The IPO is led by IDBI Capital Market Services, HDFC Bank, IIFL Securities, and Nuvama Wealth Management.
- Kfin Technologies serves as the registrar for this IPO.
Financial Performance and Market Sentiment
NTPC Green Energy has displayed robust growth, driven by its expanding renewable energy portfolio:
- Revenue increased from ₹910 crore in FY22 to ₹1,963 crore in FY24, marking a CAGR of 46.8%.
- Net Profit surged with a CAGR of 90.8% over the same period, reflecting enhanced profitability.
- The company’s solar assets have shown improved Capacity Utilization Factor (CUF), rising from 19.2% in FY22 to 23.9% in FY24, indicating better efficiency in power generation.
Grey Market Premium (GMP) Update
In the grey market, the shares of NTPC Green Energy are currently trading with a slight premium of ₹1 per share, indicating muted investor sentiment. The current GMP of ₹1 suggests that the shares are expected to list around ₹109 per share, offering a minimal premium of 0.9% over the upper price band of ₹108.
Company Overview and Vision
NTPC Green Energy Ltd is the largest public sector enterprise in the renewable energy domain, excluding hydro projects. As of September 2024:
- Operational Capacity: 3,220 MW from solar and 100 MW from wind projects.
- Geographical Presence: Across six states, showcasing a diversified asset base.
- Pipeline Projects: A robust pipeline of 26 GW+ across solar and wind, aligning with its vision to reach 60 GW renewable energy capacity by 2032.
The company holds a significant share in the renewable energy market, with 17% of installed capacity and 24% of power generation as of September 2024.
NTPC Green Energy’s IPO is generating significant interest, given its robust financial performance and the growth potential of renewable energy. Investors are keen to see how the company capitalizes on the burgeoning demand for sustainable power solutions in India.
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