NTPC Green Energy IPO will open on November 19. The IPO aims to raise Rs 10,000 crore from investors by selling 92.59 crore fresh shares. The IPO will close on November 22. This is a much anticipated public issue given the interest in renewable energy and the overall market environment.
NTPC Green Energy IPO GMP
NTPC Green Energy was fetching a premium of 0.93% in the grey market. This indicates a listing at Rs 109. Essentially that would be a lacklustre debute in terms of listing gains for investors. It also reflects the overall market trend and investor sentiment at the current juncture. Given the market volatility and upcoming Assembly election results, markets are in a wait-and-watch mode.
NTPC Green Energy IPO price band
The company set the IPO price band in a range of Rs 102 – 108 per equity share. A price band is a technique used to establish the worth of shares where a seller specifies a maximum and minimum price range, within which a buyer can submit bids.
NTPC Green Energy IPO allotment
The allotment of shares will likely be finalised on November 25. The allotment of shares is finalised by the registrar of the shares. Kfin Technologies is handling the work of the registrar of the issue.
NTPC Green Energy IPO listing
The listing on the bourses – NSE and BSE – is expected to be on November 27. The IPO listing is the day when the company’s shares debut on the stock exchanges and begin trading in the secondary market.
NTPC Green Energy IPO minimum investment
A minimum investment required by a retail individual investor is 138 shares in a single lot, which amounts to Rs 14,904. The minimum lot size investment for a small NII is 14 lots of 1,932 shares, which amounts to Rs 2,08,656. A big NII needs to place bids for at least 68 lots that have 9,384 shares, amounting to Rs 10,13,472.
About NTPC Green Energy
NTPC Green Energy, a subsidiary of NTPC, India’s largest integrated energy company with over 76GW of installed capacity, is among the top 10 renewable players in India. At the forefront of NTPC’s renewable transition, the company targets 60GW of renewable energy capacity by 2032F, scaling operational capacity from 3.3GW in Sep 2024 to 6GW by FY25, 11GW by FY26, and 19GW by FY27. It plans to add 8GW annually from FY28F to FY32F, aligning with NTPC’s broader goals.
Expert’s take on NTPC Green Energy IPO
“Reducing solar module prices at $0.09 per watt-peak and rising hybrid project tariff (Rs 3.15-3.20/kWh) improve project viability and sectoral profitability. Based on FY25 annualized financials, the IPO’s higher band implies an EV/EBITDA of 43x, and a P/BV of 4.9, which is at a premium to its peers, in our view. Adani Green trades at EV/EBITDA of 31x and P/BV of 22, while Acme Solar Holdings trades at EV/EBITDA of 18.3x and P/BV of 5.5,” said InCred Equities in an IPO note.
NTPC Green Energy IPO – Operational details
The largest renewable energy player with strong parentage: The company leverages the scale, reputation, and financial strength of NTPC, India’s largest integrated energy company with over 76GW of installed capacity.
Robust renewable energy portfolio: The green energy company operates 3,320MW of capacity across six states, including 62.2% in Rajasthan (2,065MW), 10.54% in Madhya Pradesh (350MW), and 7.98% in Uttar Pradesh (265MW).
Focus on emerging technologies and operational efficiency: The company is cautiously bidding for firm and dispatchable renewable energy (FDRE), round-the-clock (RTC), and hybrid projects, recognizing that current tariffs may not yet ensure sustainable returns due to high battery costs.
NTPC Green Energy IPO: Key risks
Chunk of revenue from top 5 clients: A focused group of utilities and electricity buyers exists for the power produced by the company’s facilities and initiatives. The company’s 87% revenue came from the top five off-takers in FY24. The company’s largest customer accounted for approximately 50% of revenue in FY24.
Solar module cost impacts profits: The organization’s operations and financial success significantly rely on the accessibility and pricing of solar modules, solar cells, wind turbine generators, and other materials, parts, and equipment essential for NTPC Green Energy’s solar, wind, and various other initiatives.
BRLMs
IDBI Capital Market Services, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the book-running lead managers of the IPO.