The much-awaited NTPC Green Energy IPO is set to hit the market on November 19, 2024, offering investors an exciting opportunity to invest in India’s renewable energy sector. The IPO aims to raise ₹10,000 crore and is entirely a fresh issue of shares.
Here’s everything you need to know about this landmark public offering.
About NTPC Green Energy Ltd
NTPC Green Energy Ltd (NGEL) is a trailblazer in India’s renewable energy sector, dedicated to advancing sustainable power solutions. As a wholly-owned subsidiary of NTPC Ltd, NGEL is the largest public sector renewable energy enterprise in India, with a diverse portfolio of solar and wind energy assets. By September 2024, the company had an operational capacity of 3,220 MW of solar projects and 100 MW of wind projects across six states.
The company plays a pivotal role in achieving India’s net-zero emission goals by focusing on innovative energy solutions such as green hydrogen, energy storage, and green chemicals. NGEL’s projects are backed by robust financials, with revenue growing at a CAGR of 46.8% from ₹910 crore in FY22 to ₹1,963 crore in FY24. Additionally, the company boasts an impressive net profit CAGR of 90.8%, showcasing its strong profitability and operational efficiency.
With a vision to achieve 60 GW of renewable energy capacity by 2032 and a current pipeline exceeding 26 GW, NTPC Green Energy Ltd is set to remain a cornerstone of India’s sustainable energy future.
Key Highlights of NTPC Green Energy IPO
The NTPC Green Energy IPO is the most anticipated public offering in the renewable energy sector, focusing on solar and wind power projects. Below are the key details and financial insights about the company and the IPO.
NTPC IPO details 2024
| Detail | Information |
|---|---|
| IPO Open Date | November 19, 2024 |
| IPO Close Date | November 22, 2024 |
| Price Band | ₹102 to ₹108 per share |
| Issue Size | ₹10,000 crore (Fresh Issue) |
| Lot Size | 138 shares |
| Minimum Investment | ₹14,904 |
| Allotment Date | November 25, 2024 |
| Demat Credit Initiation | November 26, 2024 |
| Refunds Initiated | November 26, 2024 |
| Listing Date | November 27, 2024 |
| Listing Exchange | BSE and NSE |
| GMP (Grey Market Premium) | ₹1 (as of November 18, 2024) |
| Reservation | QIB: 75%, NII: 15%, Retail: 10% |
Objective of the IPO
The proceeds will be used to:
- Investments in NTPC Renewable Energy Ltd (NREL) for new projects.
- Fund general corporate expenses to strengthen the balance sheet.
NTPC Green Energy: Key Business Highlights
- Core Operations: Largest renewable energy public sector enterprise in India. Solar capacity: 3,220 MW, Wind capacity: 100 MW.
- Revenue Growth: Increased from ₹910 crore in FY22 to ₹1,963 crore in FY24.
- Profitability: Net profit grew at a CAGR of 90.8% from FY22 to FY24.
- Future Vision: Targeting 60 GW renewable energy capacity by 2032.
Financial Performance (FY22 – FY24)
NTPC Green Energy specializes in solar and wind power generation, with an installed capacity of 3,220 MW in solar projects and 100 MW in wind projects as of September 2024.
| Metric | FY22 | FY24 | Growth |
|---|---|---|---|
| Revenue (₹ crore) | 910 | 1,963 | 46.8% CAGR |
| Net Profit (₹ crore) | 150 | 540 | 90.8% CAGR |
| Solar CUF | 19.2% | 23.9% | Improved |
| Operating Capacity (MW) | 2,500 | 3,320 | 32.8% Growth |
Industry Standing
NTPC Green Energy Ltd is India’s largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity. It holds a market share of:
- 17% in installed renewable energy capacity
- 24% in power generation (as of September 2024)
Expert Review
- Reliance Securities: Recommends subscribing for the long term due to strong fundamentals and prudent growth strategy.
- The company is well-aligned with India’s net-zero goals and focuses on new energy solutions like green hydrogen and green chemicals.
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Key Details of IPO Management
- Book Running Lead Managers: IDBI Capital, HDFC Bank, IIFL Securities, Nuvama Wealth.
- Registrar: KFin Technologies.
NTPC Green Energy IPO: Frequently Asked Questions (FAQs)
NTPC Green Energy Ltd (NGEL) is a subsidiary of NTPC Ltd, specializing in renewable energy projects. It operates solar and wind power plants across India and is a key player in India’s journey towards sustainable energy and achieving net-zero emissions.
The price band for the NTPC Green Energy IPO is set at ₹102 to ₹108 per share.
The IPO opens for subscription on Tuesday, November 19, 2024, and closes on Friday, November 22, 2024.
The IPO aims to raise ₹10,000 crore through a fresh issue of 92.59 crore equity shares.
Lot Size: 138 shares
Minimum Investment: ₹14,904
The shares are reserved as follows:
Qualified Institutional Buyers (QIBs): 75%
Non-Institutional Investors (NIIs): 15%
Retail Investors: 10%
As of November 18, 2024, the GMP is ₹1 per share, indicating a slight premium over the upper price band of ₹108.
The shares will be listed on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).
The proceeds from the IPO will be used for:
Investments in NTPC Renewable Energy Ltd (NREL) to develop new projects.
General corporate purposes to strengthen the company’s financial position.
Bottom Line
The NTPC Green Energy IPO represents a golden opportunity for investors seeking exposure to India’s growing renewable energy sector. With its strong fundamentals, long-term vision, and focus on green energy, it’s a promising investment for both retail and institutional participants.
Subscribe to the IPO now and contribute to a greener future!
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