NTPC Green Energy plans to raise ₹10,000 crore through a fresh issue of 92.59 crore shares.
The IPO will open on Tuesday, November 19, and close on Friday, November 22. The company will finalize allotments on November 25, and it will credit the shares on November 26. NTPC Green Energy will get listed on Wednesday, November 27, 2024.
The price band for the IPO ranges between ₹102 and ₹108 per share, with a minimum lot size of 138 shares.
NTPC Green Energy Limited IPO Details
| IPO Date | November 19, 2024 to November 22, 2024 |
| Listing Date | November 27, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹102 to ₹108 per share |
| Lot Size | 138 Shares |
| Total Issue Size | 925,925,926 shares |
| Fresh Issue | 925,925,926 shares |
| Employee Discount | Rs 5 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE, BSE |
| Share holding pre issue | 7,500,000,000 |
| Share holding post issue | 8,425,925,926 |
NTPC Green Energy IPO Timeline
| IPO Open Date | Tuesday, November 19, 2024 |
| IPO Close Date | Friday, November 22, 2024 |
| Basis of Allotment | Monday, November 25, 2024 |
| Initiation of Refunds | Tuesday, November 26, 2024 |
| Credit of Shares to Demat | Tuesday, November 26, 2024 |
| Listing Date | November 27, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on November 22, 2024 |
NTPC Green Energy IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not less than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10.00% of Net Issue |
| NII (HNI) Shares Offered | Not more than 15.00% of the Net Issue |
NTPC Green Energy IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 138 | ₹14,904 |
| Retail (Max) | 13 | 1794 | ₹193,752 |
| S-HNI (Min) | 14 | 1,932 | ₹208,656 |
| S-HNI (Max) | 67 | 9,246 | ₹998,568 |
| B-HNI (Min) | 68 | 9,384 | ₹1,013,472 |
About NTPC Green Energy Limited
NTPC Green Energy Ltd, a subsidiary of NTPC Ltd (a Maharatna Central Public Sector Enterprise), plays a prominent role in India’s renewable energy sector, focusing on solar and wind energy. The company is launching its initial public offering (IPO). This overview provides details about the IPO, the company’s profile, its core strengths, and the potential risks involved.
As part of NTPC’s renewable energy division, NTPC Green Energy works to advance India’s sustainable energy goals. The company specializes in solar and wind power projects and actively participates in long-term Power Purchase Agreements (PPAs) to supply power primarily to other public sector undertakings (PSUs) and private corporations.
As of June 30, 2024, the company manages a portfolio of 14,696 MW in renewable projects, including 3,071 MW of operational solar capacity and 100 MW of wind capacity. The remaining 11,771 MW includes awarded or contracted projects that are not yet operational, highlighting significant growth potential.
NTPC Green Energy Limited Financial Information
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 |
| Assets | 32,408.30 | 27,206.42 | 18,431.40 |
| Revenue | 1,132.74 | 2,037.66 | 170.63 |
| Profit After Tax | 175.30 | 344.72 | 171.23 |
| Net Worth | 8,189.18 | 6,232.14 | – |
| Reserves and Surplus | 596.08 | 512.60 | 167.88 |
| Total Borrowing | 17,057.50 | 12,796.74 | – |
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 7.39% |
| Debt/Equity | 1.91 |
| RoNW | 2.14% |
| P/BV | 9.89 |
| PAT Margin (%) | 16.2 |
NTPC Green Energy IPO Peer Comparison
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/BV Ratio | Financial Statements |
|---|---|---|---|---|---|---|---|
| NTPC Green Energy Limited | 0.73 | 0.73 | 10.90 | – | 5.53 | 9.91 | Consolidated |
| Adani Green Energy Ltd | 6.21 | 6.20 | 62.08 | 259.83 | 12.81 | 28.82 | Consolidated |
| Renew Energy Global PLC | 9.94 | 9.92 | 290.15 | 47.05 | 3.94 | 1.61 | Consolidated |
Strengths of the Company
- NTPC Green Energy ranks among the top 10 renewable energy companies in India in terms of operational capacity as of mid-2024, providing a solid foundation and experience in project execution.
- Support from NTPC, a well-established player in India’s energy sector, offers NTPC Green Energy an advantage in executing large-scale projects.
- With a portfolio of 14,696 MW in solar and wind projects across six states, the company minimizes geographical risk and expands its reach.
- The company’s strong credit rating and growth in revenues allow it access to capital at lower costs, which enhances its financial flexibility.
- NTPC Green Energy’s operating model includes robust revenue generation and a high EBITDA margin, underscoring its efficient project management and resource allocation.
Risks Related to the Company
- Like many in the renewable energy sector, NTPC Green Energy faces potential cost overruns or delays in project completion, which could impact business results, financial health and cash flow stability.
- A significant portion of the company’s renewable energy operations is concentrated in Rajasthan. Any adverse economic, political, or natural disruptions in this region could negatively affect the business.
- NTPC Green Energy’s reliance on utility off-takers for revenue makes it vulnerable to delays or non-payment issues.
- Renewable energy projects are capital-intensive and NTPC Green Energy may require additional financing to meet its expansion goals.
- The company depends heavily on a limited pool of off-takers, with over 87% of revenue derived from the top five clients in FY 2024.
Investor Outlook
NTPC Green Energy’s IPO presents a promising opportunity to invest in India’s renewable energy sector, backed by NTPC’s strong reputation and resource base. With an extensive portfolio, operational efficiency and solid financial performance, the company is well-positioned for future growth.
However, potential investors should be mindful of the associated risks, including project completion timelines, geographic concentration and receivables management. Careful evaluation of these factors is essential for making an informed decision before applying for the IPO.
Frequently Asked Questions
The NTPC Green Energy IPO is a main-board IPO offering 925,925,926 equity shares. Each share has a face value of ₹10, with the total issue size amounting to ₹10,000 Crores. The minimum order quantity is 138 Shares.
The IPO will open on November 19, 2024, and close on November 22, 2024.
The registrar of NTPC Green Energy IPO is Kfin Technologies Limited.
Contact Information
Kfin Technologies Limited
Phone: 04067162222, 04079611000
E-mail: ntpcgreen.ipo @ kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/
The IPO will open for subscription by November 19, 2024 and will close by November 22, 2024.
Once the IPO will be live, you will be able to apply directly at Findoc website.
The listing date is not yet announced. The tentative date of NTPC Green Energy IPO listing is Wednesday, November 27, 2024.
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