NTPC Green Energy IPO: Date, Price, GMP & More

NTPC Green Energy IPO-Complete Overview

NTPC Green Energy IPO a Mainboard IPO is a book-built issue of Rs.10,000 crore (925,925,926 Shares) by NTPC Green Energy Limited a wholly-owned subsidiary of NTPC Limited, which was incorporated in April 2022. NTPC Green is a renewable energy company that specializes in using both organic and inorganic methods to complete projects.

As of August 31, 2024, the company's operational capacity was 3,071 MW from solar projects and 100 MW from wind projects spread throughout six states.

As of June 30, 2024, the company's portfolio totaled 14,696 MW, comprising 2,925 MW of ongoing projects and 11,771 MW of contractual and awarded projects. The company had 15 off-takers, distributed over 37 solar and 9 wind projects, and constructed 31 renewable energy projects totaling 11,771 MW in 7 States.

This new IPO is to be launched on 19 November 2024, and the initial public offering of this upcoming IPO will end on 22 November 2024.

NTPC Green Energy IPO Details

The Rs.10,000 crore Green Energy IPO from NTPC comprises a wholly fresh Issue of 92.59 crore Shares. The IPO listing date is on November 27, 2024. NTPC Green Energy IPO share price is Rs.102 to Rs.108. 

NTPC Green Energy IPO Shareholder Quota- Rs.1000 Cr.

If you want to apply for the IPO, Click Here to open a Demat Account.

Company Financial

The company’s revenue grew by 1094.19% and PAT increased by 101.32% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Values in millions)

 

Segment-wise Revenue Bifurcation

(Values in millions)

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Investment in NTPC Renewable Energy Limited (NREL), a wholly owned subsidiary, for the redemption or prepayment of all or a portion of some outstanding loans obtained by NREL

• Corporate Purposes.
  
  

Peers of NTPC Green Energy Limited

 

Evaluation

The IPO price is between Rs.102 to Rs.108 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.0.73 from the last year, the resulting P/E ratio is 147.94x.  

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 153.44x.

 

In simple words, the P/E ratio of this IPO (147.94x), compared with the industry’s average P/E of 153.44x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths 

• It has a skilled staff that manages, acquires, and maintains renewable energy projects.

• The low cost of capital employed is made possible by the company's increasing revenues and credit ratings.

• Knowledgeable management group.

 

IPO’s Weaknesses 

• In the fiscal year 2023-2024, the top five off-takers accounted for almost 87% of the company's revenue, with the largest off-taker alone providing close to 50%. Any customer loss could have an impact on the company.

• The business relies on outside vendors to provide its needs for equipment, materials, and components. A delay in timely delivery can affect money and business.

• Rajasthan accounted for the majority of NTPC Green Energy's operational renewable projects for the fiscal year 2023-2024 (FY24) and the six months that ended on September 30, 2024. Business can be impacted by any political, social, or economic upheaval in the state.

• The business has incurred significant debt, and failure to make payments could harm its financial and operational health.

• Due to the cyclical nature of the industry, operating results can vary from

 

NTPC Green Energy IPO GMP

NTPC Green Energy IPO GMP today is Rs.5, with a price band of Rs.108, the estimated listing price is Rs.113 (as of 13 November 2024).

NTPC Green Energy IPO Timetable (Tentative)

The IPO date is from 19 November to 22 November, with IPO allotment on 25 November, and refund initiation on 26 November. The IPO listing date is on 27 November 2024.

 

NTPC Green Energy IPO Other Details 

NTPC Green IPO with a face value of Rs.10 per Share offers a total issue size of 925,925,926 Shares and it will be listed at BSE and NSE.

NTPC Green Energy IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (138 Shares) amounting to Rs.14,904 and 13 Lots (1794 Shares) amounting to Rs.1,93,752 respectively, while for HNI investors, the minimum Lot is 14 (1,932 Shares) amounting to Rs.2,08,656.

IPO Reservation

Promoters and Management of NTPC Green Energy Limited. 

The President of India through the Ministry of Power, Government of India, and NTPC Limited are the promoters of the company.

IPO Lead Managers

• IDBI Capital Market Services Limited

• HDFC Bank Limited

• IIFL Securities Ltd.

• Nuvama Wealth Management Limited.
  
  

Dividend Policy

The company has not paid any dividends since incorporation.

 

Conclusion

The NTPC Green Energy IPO, with a total issue size of Rs.10,000 crore, focuses on solar and wind projects spread across multiple states. Its strong portfolio and high growth in revenue along with profits present an excellent to poor combination of potential and risk, mainly due to its dependency on a few large clients and debt levels. Investors must be cautious while scrutinizing the range of the price, reservation shares, and expansion targets of the company. 

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Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

The company’s data is taken from the Company’s RHP (Red Herring Prospectus) as of 12 November 2024.

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