NTPC Green Energy IPO: RHP Likely to be Filed on Monday, All You Need to Know

Last Updated:November 09, 2024, 15:41 IST

NTPC Green Energy Limited, a wholly-owned subsidiary of NTPC Limited, has already obtained remaining approval from markets regulator Sebi for its Rs 10,000-crore IPO.

NTPC Green Energy, a subsidiary of electrical energy generator NTPC Ltd, is predicted to file its purple herring prospectus (RHP) on Monday, November 11. And, those that purchased NTPC’s shares until Friday are more likely to be thought-about eligible buyers for shareholder quote of the NTPC Green Energy IPO, in keeping with folks accustomed to the matter.

The firm lately obtained remaining approval of markets regulatory Sebi for its Rs 10,000-crore preliminary public providing. It had filed the draft IPO papers on September 18, 2024.

Apart from shareholders quota, the IPO features a reservation in subscription for eligible workers and a reduction is being provided to eligible workers bidding within the worker reservation portion.

NTPC Green Energy IPO: Opening Date

Though the official date has not been introduced but, the IPO is predicted to be launched this month. According to media stories, the IPO could also be opened for bidding on Monday, November 18.

The worth of the IPO may also be introduced within the upcoming days.

The NTPC Green Energy IPO may also have a shareholders quota. So, those that have shares of NTPC as of the date of RHP, which shall be filed later, can take part within the shareholders class within the IPO.

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

As the NTPC Green Energy IPO may also have a shareholders quota, buyers should buy one NTPC shares now to be eligible for the shareholders class. It will increase their probabilities of IPO allotment. Those who’ve shares of NTPC as of the date of RHP, which shall be filed later, can take part within the shareholders class within the IPO.

NTPC Green Energy IPO: What Analysts’ Say

ICICI Securities has given a ‘buy’ score to the shares of NTPC. It stated NTPC Green Energy Limited (NGEL), a 100 per cent subsidiary of NTPC, is seeking to debut on exchanges as the corporate information its DRHP.

“We analyse NGEL’s enterprise, take a look at its valuation metrics and consider key considerations. The firm has an operational capability of three.2GW, 12GW of contracted under-construction renewable power (RE) initiatives and future growth pipeline at 11GW. NGEL shouldn’t be solely seeking to arrange utility-scale RE initiatives, but additionally tie up with corporates and PSUs for his or her captive RE necessities. We anticipate the return ratios for captive to be larger than utility-scale initiatives,” 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 said.

“The IPO comes at a time when thermal power-heavy NTPC is searching for different power avenues to diversify into and bolster revenues,” Kranthi Bathini, director of fairness technique at WealthMills Securities stated, in keeping with 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 added.

NTPC Green Energy IPO: More Details

The proceeds from the contemporary situation to the extent of Rs 7,500 crore shall be used for funding in its wholly owned Subsidiary, NTPC Renewable Energy Limited (NREL) for compensation/ prepayment, in full or in a part of sure excellent borrowings availed by NREL; and basic company functions.

Promoted by NTPC Ltd, NTPC Green Energy is the biggest renewable power public sector enterprise (excluding hydro) when it comes to working capability as of June 30, 2024 and energy era in Fiscal 2024, in keeping with a CRISIL Report talked about within 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”, aggregating to 25,671 MWs along with its Portfolio.

The Company’s renewable power portfolio encompasses each photo voltaic and wind energy belongings with presence throughout a number of places in additional than six states which helps mitigate the danger of location-specific era variability, in keeping with a CRISIL Report talked about within the DRHP.

As of June 30, 2024, NTPC Green had 15 offtakers throughout 37 photo voltaic initiatives and 9 wind initiatives and are within the strategy of developing 31 renewable power initiatives in 7 states consisting of 11,771 MWs Contracted and Awarded. It additionally had 2,925 MWs working throughout 14 photo voltaic initiatives and a pair of wind initiatives.

Its operational capability was 3,071 MW of photo voltaic initiatives and 100 MW of wind initiatives throughout six (6) states as of August 31, 2024, strategically centered on growing a portfolio of utility-scale renewable power initiatives, in addition to initiatives for public sector undertakings (“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.