NTPC Green Energy IPO Highlights: The green energy arm of NTPC launched its IPO on November 19. The issue closes on November 22. It aims to raise Rs 10,000 crore by selling entirely 92.59 crore fresh shares. The allotment is expected to be finalised on November 25.
NTPC Green Energy set the IPO price band in a range of Rs 102 – 108 per equity share. Also, the issue includes a reservation of up to 19.41 million shares for employees, which are offered to them at a discount of Rs 5 to the issue price. IDBI Capital Market Services, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the book-running lead managers of the IPO.
NTPC Green Energy IPO 2024 Live Updates: GMP, listing, subscription status
NTPC Green Energy IPO 2024 Live Updates: NTPC Green Energy IPO Anchor investor details
The NTPC Green Energy IPO raised Rs 3,960 crore from anchor investors, with the bid date on November 18, 2024. A total of 366,666,666 shares were offered, with a lock-in period of 30 days for 50% of the shares (ending December 25, 2024) and 90 days for the remaining shares (ending February 23, 2025). The IPO opens on November 19, 2024, and closes on November 22, 2024, with shares credited to demat accounts by November 26, 2024, and listing on November 27, 2024. The minimum retail bid is for 138 shares (₹14,904), with higher amounts for HNI investors. The promoters are the President of India, through the Ministry of Power, and NTPC Limited.
NTPC Green Energy IPO 2024 Live Updates: minimum bidding for investors
The NTPC Green Energy IPO allows investors to bid for a minimum of 138 shares, with subsequent bids in multiples of 138. Retail investors can apply for a minimum of 138 shares, amounting to Rs 14,904, and a maximum of 1,794 shares, totaling Rs 193,752. For Small-HNI (S-HNI) investors, the minimum bid is 1,932 shares (Rs 208,656), with the maximum being 9,246 shares (Rs 998,568). Big-HNI (B-HNI) investors can apply for a minimum of 9,384 shares, amounting to Rs 1,013,472.
NTPC Green Energy IPO 2024 Live Updates: Tentative schedule
The NTPC Green Energy IPO was opened on Tuesday, November 19, 2024, and closed on Friday, November 22, 2024. The basis of allotment will be finalized on Monday, November 25, 2024, with refunds initiated and shares credited to Demat accounts by Tuesday, November 26, 2024. The listing date for the shares on the stock exchanges is set for Wednesday, November 27, 2024. Additionally, investors must confirm their UPI mandates by 5 PM on November 22, 2024, to ensure smooth processing of their applications.
NTPC Green Energy IPO 2024 Live Updates: GMP slips to lower end
NTPC Green Energy IPO 2024 Live Updates: Final subscription numbers for IPO
NTPC Green Energy IPO 2024 Live Updates: Registrar of the issue and book running lead managers
IDBI Capital Market Services Limited, HDFC Bank Limited, IIFL Securities Ltd, and Nuvama Wealth Management Limited are the book running lead managers for the NTPC Green Energy IPO, while Kfin Technologies Limited is the registrar for the issue.
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NTPC Green Energy IPO 2024 Live Updates: NTPC Green Energy IPO basic details
The NTPC Green Energy IPO has set a price band of Rs 102 to Rs 108 per share. The minimum lot size for an application is 138 shares, with a minimum investment of Rs 14,904 for retail investors. For small and non-institutional investors (sNII), the minimum investment is Rs 208,656 for 1,932 shares (14 lots), while for bulk non-institutional investors (bNII), it is Rs 1,013,472 for 9,384 shares (68 lots). Additionally, the issue reserves up to 19,417,476 shares for employees, who can purchase them at a discount of Rs 5 per share from the issue price.
NTPC Green Energy IPO 2024 Live Updates: Objectives of IPO
The proceeds from the NTPC Green Energy IPO will be utilized for two main purposes: first, to invest in its wholly owned subsidiary, NTPC Renewable Energy Limited (NREL), for the repayment or prepayment, either in full or in part, of certain outstanding borrowings by NREL; and second, for general corporate purposes.
NTPC Green Energy IPO 2024 Live Updates: Key performance inidicator of NTPC Green Energy IPO
As of September 30, 2024, NTPC Green Energy IPO has a market capitalization of Rs 91,000 crore. The company's key performance indicators (KPIs) include a Return on Equity (ROE) of 7.39%, a Debt-to-Equity ratio of 1.91, a Return on Net Worth (RoNW) of 2.14%, a Price-to-Book Value (P/BV) ratio of 9.89, and a Profit After Tax (PAT) margin of 16.2%.
NTPC Green Energy IPO 2024 Live Updates: Anchor investor details
The NTPC Green Energy IPO raised Rs 3,960 crore from anchor investors on November 18, 2024. A total of 366,666,666 shares were offered to anchor investors. The lock-in period for 50% of the anchor investors' shares will end on December 25, 2024, while the remaining shares will be locked in until February 23, 2025.
NTPC Green Energy IPO 2024 Live Updates: Geojit Financial Services views on NTPC Green Energy IPO
"At the upper price band of ₹108, NGEL is available at P/Bv of 4.9x (on FY25E annualised financials), which appears to be fairly priced. We assign a “Subscribe” rating for the issue on a long-term investment basis, considering its strong brand recall, superior execution capabilities, portfolio expansions, investment in nextgen energy solutions (Battery Energy Storage Systems & Green Hydrogen derivatives), and promising industry outlook."
NTPC Green Energy IPO 2024 Live Updates: NTPC Green Energy IPO promoter shareholding pattern
NTPC Green Energy IPO Live Updates: Minimum investment for bidding
For the NTPC Green Energy IPO, investors can bid for a minimum of 138 shares and in multiples thereof. Retail investors can apply for a minimum of 1 lot (138 shares) for Rs 14,904, and a maximum of 13 lots (1,794 shares) for Rs 193,752. For Small HNIs (S-HNI), the minimum investment is 14 lots (1,932 shares) for Rs 208,656, with a maximum of 67 lots (9,246 shares) for Rs 998,568. Big HNIs (B-HNI) can apply for a minimum of 68 lots (9,384 shares) for Rs 1,013,472.
NTPC Green Energy IPO Live Updates: NTPC Green Energy IPO Tentative Schedule
The NTPC Green Energy IPO opened on November 19, 2024, and close on November 22, 2024. The basis of allotment will be finalized on November 25, 2024, and refunds will be initiated on November 26, 2024, along with the credit of shares to demat accounts. The listing date for the shares is set for November 27, 2024. The cut-off time for UPI mandate confirmation is 5 PM on November 22, 2024.
NTPC Green Energy IPO Live Updates: NTPC Green Energy IPO Subscription on Day1, Day 2 and Day 3
NTPC Green Energy IPO Live Updates: Latest Grey Market Premium Of NTPC Green Energy IPO
Currently, NTPC Green Energy’s grey market premium (GMP) is at +0, indicating that shares are trading flat in the grey market with no premium over the IPO price. With the IPO price band’s upper limit and the flat GMP, the estimated listing price is expected to be ₹108 per share, matching the IPO’s cap price.
Recent grey market trends reveal a downward movement in GMP for NTPC Green Energy shares. Over the last 17 sessions, the GMP has ranged between Rs 0 and Rs 25, as noted by experts at Investorgain.com, reflecting investor sentiment and their willingness to pay a premium over the issue price.
By the end of the second day of bidding, the NTPC Green Energy IPO was subscribed 93%, according to data from the Bombay Stock Exchange (BSE). Retail investors led the demand, with their portion subscribed 2.38 times.
While the portion reserved for Non-Institutional Investors (NIIs) was subscribed at 34% and Qualified Institutional Buyers (QIBs) at 75%. The IPO received applications for 54,97,38,180 shares against the 59,31,67,575 shares on offer. On its opening day, the IPO saw a subscription rate of 33%.
Read More: NTPC Green Energy IPO receives 93% subscription so far: Here’s latest GMP and more
NTPC Green Energy IPO Live Updates: New projects by the company
The company is investing in hydrogen, green chemicals, battery storage solutions, and related technologies. This includes finalizing an electrolyzer partnership and establishing a green hydrogen center in Pudimadaka. To complement solar and wind power, it aims to deploy grid-scale battery storage as part of its comprehensive renewable energy initiatives, ensuring reliable and round-the-clock (RTC) energy supply.
NTPC Green Energy IPO Live Updates: IPO 93% subscribed
NTPC Green Energy Ltd's IPO saw a 93% subscription by the end of its second day of bidding.
Retail investors led the response, oversubscribing their portion by 2.38 times. Qualified Institutional Buyers (QIBs) followed with 75% subscription, while the Non-Institutional Investors (NIIs) booked 34% of their allotted shares.
The IPO remains open for public bidding on its final day, Friday, November 22.
NTPC Green Energy IPO Live Updates: Anand Rathi recommends “Subscribe for Long Term” for the IPO
Anand Rathi’s report on the NTPC Green Energy IPO underscores the company’s position as a leading player among public sector units (PSUs) in the renewable energy sector. With a diverse portfolio spanning solar, wind, hydroelectric power, and energy storage, the company is well-poised for significant growth.
The report highlights NTPC Green Energy’s ambitious expansion plans, particularly in hydroelectric power, as a driver for future growth. The company aims to scale its operational capacity from 3.3 GW in September 2024 to 6 GW by FY25E, 11 GW by FY26E, and 19 GW by FY27E.
Priced at an upper band of ₹108 per share, the IPO gives NTPC Green Energy an estimated market capitalization of ₹91,000 crore. However, the valuation appears steep, with a price-to-book (PB) ratio of 4.96x and a price-to-earnings (PE) ratio of 259.56x based on FY25E annualized earnings. Anand Rathi characterizes this pricing as “aggressively priced.”
Despite the high valuation, the report emphasizes the company’s strong fundamentals. NTPC Green Energy benefits from its established capacity, competitive operating costs, strategic growth plans, and access to low-cost capital, supported by its NTPC parent.
Anand Rathi recommends subscribing to the IPO for long-term gains, citing the company’s strong positioning to leverage the growing demand for renewable energy.
NTPC Green Energy IPO Live Updates: Who are the IPO's lead managers?
The IPO was managed by book-running lead managers, including IDBI Capital Market Services, HDFC Bank, IIFL Securities, and Nuvama Wealth Management.
NTPC Green Energy IPO Live Updates: IPO saw 33% subscription on Day 1
The NTPC Green Energy IPO, owned by the Government of India, achieved a 33% subscription rate on its opening day. Retail investors led the charge, oversubscribing their portion by 1.33 times.
Non-Institutional Investors (NII) subscribed to 16% of the shares offered to them, while the Qualified Institutional Buyers (QIBs) segment saw no bids on the first day. Meanwhile, the employee category recorded a 17% subscription, and 57% of the shares reserved for the shareholder segment were taken up.
NTPC Green Energy IPO Live Updates: NGEL IPO subscribed 91% so far
The NTPC Green Energy IPO has been subscribed 0.91 times as of 3:57 PM on November 21, 2024. The subscription breakdown reveals varied interest among categories: the Non-Institutional Investors (NII) portion has been subscribed 0.32 times, Qualified Institutional Buyers (QIBs) 0.74 times, the retail portion 2.31 times, employee category 0.39 times, and the shareholder reservation portion 0.98 times.
NTPC Green Energy, a subsidiary of NTPC Ltd, India's leading power producer, has set its IPO price band between ₹102 and ₹108 per share, aiming to raise ₹10,000 crore. Preceding the IPO, the company secured ₹3,960 crore through its anchor book on Monday, with Life Insurance Corporation of India (LIC) emerging as the largest investor, contributing ₹500 crore.
Nearly 36.67 crore equity shares were allocated to anchor investors at ₹108 per share, marking a strong start to the offering.
NTPC Green Energy IPO Live Updates: Industry tailwinds
There has been a significant uptick in tendering and auction activities in the renewable sector. Over the past three fiscal years, India has issued more than 150GW of renewable energy tenders, with an average allocation success rate of 85%.