NTPC Green Energy IPO: Opening Date, Size, Price, All You Need to Know

Last Updated: November 03, 2024, 11:40 IST

NTPC Green Energy Limited, a wholly-owned subsidiary of NTPC Limited, has actually currently gotten last authorization from markets regulatory authority Sebi for its Rs 10,000-crore IPO.

Even as NTPC Green Energy Limited, a wholly-owned subsidiary of NTPC Limited, has actually gotten last authorization from markets regulatory authority Sebi, its Rs 10,000-crore IPO is anticipated to strike the key market quickly. The IPO with a stated value of Rs 10 per equity share will totally be a fresh problem of equity shares.

The business had actually submitted its IPO documents with Sebi on September 18, 2024.

The IPO likewise consists of an appointment for a membership by qualified workers and a discount rate is being provided to qualified workers bidding process in the worker appointment part.

NTPC Green Energy IPO: Opening Date

Though the main day has actually not been revealed yet, the IPO is anticipated to be released this month.

The rate of the IPO will certainly likewise be revealed in the future days.

The NTPC Green Energy IPO will certainly likewise have an investors allocation. So, those that have shares of NTPC since the day of RHP, which will certainly be submitted later on, can take part in the investors classification in the IPO.

NTPC Green Energy IPO: What Should Investors Do To Raise IPO Allotment Chance

As the NTPC Green Energy IPO will certainly likewise have an investors allocation, financiers can acquire one NTPC shares currently to be qualified for the investors classification. It will certainly increase their opportunities of IPO allocation. Those that have shares of NTPC since the day of RHP, which will certainly be submitted later on, can take part in the investors classification in the IPO.

NTPC Green Energy IPO: What Analysts’ Say

ICICI Securities has actually offered a ‘buy’ score to the shares of NTPC. It stated NTPC Green Energy Limited (NGEL), a 100 percent subsidiary of NTPC, is wanting to debut on exchanges as the business submits its DRHP.

“We evaluate NGEL’s company, consider its assessment metrics and examine crucial problems. The business has a functional capability of 3.2 GW, 12GW of gotten under-construction renewable resource (RE) jobs and future advancement pipe at 11GW. NGEL is not just wanting to establish utility-scale RE jobs, yet likewise consolidate corporates and PSUs for their restricted RE needs. We anticipate the return proportions for slave to be greater than utility-scale jobs,” ICICI Securities said in a note.

NTPC targets 60 gigawatts (GW) of renewable energy (RE) capacity by FY32.

“We estimate revenue of Rs 117 billion (Rs 11,700 crore), EBITDA of Rs 95-100 billion (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 specified.

“The IPO comes with a time when thermal power-heavy NTPC is searching for various other power opportunities to expand right into and reinforce incomes,” Kranthi Bathini, director of equity strategy at WealthMills Securities said, according to Reuters.

“Considering the fact that green energy will remain in focus in the near future, investors would definitely want a slice of this pie,” Bathini included.

NTPC Green Energy IPO: More Details

The follows the fresh problem for Rs 7,500 crore will certainly be utilized for financial investment in its entirely had Subsidiary, NTPC Renewable Energy Limited (NREL) for payment/ early repayment, completely or partially of particular impressive loanings availed by NREL; and basic company objectives.

Promoted by NTPC Ltd, NTPC Green Energy is the biggest renewable resource public market venture (leaving out hydro) in regards to running capability since June 30, 2024 and power generation in Fiscal 2024, according to a CRISIL Report discussed 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”, accumulating to 25,671 MWs along with its Portfolio.

The Company’s renewable resource profile incorporates both solar and wind power possessions with existence throughout several places in greater than 6 states which aids minimize the threat of location-specific generation irregularity, according to a CRISIL Report discussed in the DRHP.

As of June 30, 2024, NTPC Green had 15 offtakers throughout 37 solar jobs and 9 wind jobs and remain in the procedure of creating 31 renewable resource jobs in 7 states including 11,771 MWs Contracted andAwarded It likewise had 2,925 MWs running throughout 14 solar jobs and 2 wind jobs.

Its functional capability was 3,071 MW of solar jobs and 100 MW of wind jobs throughout 6 (6) mentions since August 31, 2024, purposefully concentrated on establishing a profile of utility-scale renewable resource jobs, in addition to jobs for public market endeavors (” PSUs”) and Indian corporates.

NTPC Green Energy’s revenue from operations has grown at a CAGR of 46.82% from ₹910.42 crore in Fiscal 2022 (on a special purpose carved-out basis) to ₹1,962.60 crore in Fiscal 2024 (on a restated basis). Profit after tax grew at a CAGR of 90.75% from ₹94.74 crore in Fiscal 2022 (on a special purpose carved-out basis) to ₹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.