Last Updated:
Unlisted shares of NTPC Green Energy Ltd remain to trade Rs 0.70 greater or at 0.65 percent costs in the grey market over the problem cost of Rs 108 each.
NTPC Green Energy IPO.
NTPC Green Energy IPO: The NTPC Green Energy IPO saw a warm beginning on its opening day, November 19, attaining a registration price of 12%. Investors registered for over 7 crore shares from the 59.3 crore shares offered.
Key Opening Day Highlights
Retail Investors Show Strongest Interest
Retail Individual Investors (RIIs) led the engagement, signing up for 50% of their alloted 8.6 crore shares, amounting to 4.3 crore shares. This sector added considerably to the IPO’s first efficiency.
Non-Institutional Investors’ Modest Participation
Non-Institutional Investors (NIIs) acquired 56.2 lakh shares, which is a tiny portion of their assigned 12.9 crore shares.
Institutional Investors Stay on the Sidelines
Qualified Institutional Buyers (QIBs), a crucial classification in the majority of IPOs, revealed no task on the very first day, taping no memberships.
The cost band of the much-awaited IPO has actually been repaired in the variety of 102-Rs 108.
The Rs 10,000-crore IPO will certainly be shut onFriday The IPO part will certainly be settled on November 25, while its listing will certainly occur on November 27.
NTPC Green Energy IPO GMP Today
According to market viewers, non listed shares of NTPC Green Energy Ltd remain to trade Rs 0.70 greater at Rs 108.7 each in the grey market. The Rs 0.70 GMP is simply a 0.65 percent costs over the problem cost of Rs 108 each. It signifies a controlled rate of interest in the IPO.
The GMP is based upon market beliefs and maintains transforming. ‘Grey market premium’ suggests financiers’ preparedness to pay greater than the problem cost.
NTPC Green Energy IPO: Shareholders’ Quota
Shareholders of its moms and dad entity NTPC Ltd will certainly have a top side in the much-awaited offering as they have 10 percent allocation. According to the red herring program (RHP), Rs 1,000 crore of the Rs 10,000-crore IPO will certainly be scheduled for NTPC’s investors and any kind of financier holding also one share of NTPC will certainly be qualified to use under the investor allocation, hence enhancing opportunities of the IPO part.
According to the RHP, “equity show to a stated value of Rs 10 each will certainly be alloted to qualified investors on a proportional basis, with this scheduled section not surpassing 10 percent of the overall problem dimension.”
NTPC Green Energy IPO Shareholders’ Quota: Who Are Eligible?
Under this, investors holding NTPC’s shares in their demat account as of the RHP filing date — November 13 — will be able to apply for the NTPC Green Energy IPO under the 10% shareholder quota.
Shares of NTPC Ltd were trading lower by 2.28 per cent at Rs 364 apiece on the BSE on Monday, a day before the NTPC Green Energy IPO.
NTPC Green Energy IPO: Should You Apply? Analysts’ Recommendations
Most brokerages have given ‘subscribe for long term’ recommendations for the IPO.
SBI Securities in its IPO note said, “NGEL has a large portfolio of utility-scale solar and wind energy projects coupled with projects for PSUs and Indian corporates. The company along with the NTPC Group have a strong track record of developing, constructing and operating renewable power projects, driven by experienced in-house management and procurement teams.”
At the top cost band of Rs 108, NGEL is valued at FY24 EV/EBITDA of 53.4 x on article problem funding. The business will certainly raise its functional capability to 6/11/19 GW by FY25E/FY26E/FY27E specifically from 3.3 GW since September 2024. Basis our rear of the envelope computation, at top cost band, the problem is valued at FY25E/FY26E/FY27E EV/EBITDA multiple of 35.3 x/18.3 x/10.1 x and EV/MW of Rs 16.8 cr/9.0 cr/5.1 cr specifically. The business has rapid development capacity in tool term with its Revenue/ EBITDA/PAT anticipated to expand at a CAGR of 79.0%/ 117.2%/ 123.8% to Rs 11,250 cr/9,563 cr/1,980 cr specifically over FY24-27E duration.
“We suggest financiers to sign up for the problem at cut-off cost for long-term,” SBI Securities said in the note.
Another brokerage firm Reliance Securities also granted a ‘subscribe for long term’ rating to the IPO.
It said NGEL benefits from NTPC’s financial strength and long-term relationships with off takers and suppliers, growing its revenues along with strong credit ratings that enable a low cost of debt executing large scale projects. NGEL has deep domain expertise of the management team focusing on new energy solutions like green hydrogen, green chemicals and storage with prudent growth and contributing towards fulfilling India’s net zero goals.
“We believe with a prudent business model and strong earnings growth with improved financials and return ratios, we recommend a Subscribe to the issue for the long term,” Reliance Securities stated.
Kranthi Bathini, supervisor of equity technique at We althMills Securities, has stated the IPO comes with a time when thermal power-heavy NTPC is seeking various other power opportunities to branch out right into and boost earnings,” .
“Considering the fact that green energy will remain in focus in the near future, investors would definitely want a slice of this pie, “Bathini added.
NTPC Green Energy IPO: More Details
The IPO is entirely a fresh issue of up to Rs 10,000 crore with no offer for sale component. A discount of Rs 5 per equity share is being offered to eligible employees bidding in the employee reservation portion.
The IPO will remain opened between November 19 and November 22. The allotment is scheduled to be finalised on November 25, while the listing will take place November 27.
The proceeds from its fresh issuance will be utilised to the extent of Rs 7 500 crore for investment in its wholly-owned subsidiary, NTPC Renewable Energy Limited (NREL) for repayment/ prepayment, in full or in part of certain outstanding borrowings availed by NREL and general corporate purposes.
NTPC Green Energy is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of September 30, 2024 and power generation in Fiscal 2024, according to a CRISIL Report, November 2024.
As of September 30, 2024, its portfolio consisted of 16,896 MWs including 3,320 MWs of operating projects and 13,576 MWs of contracted and awarded projects. 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).
