NTPC Green Energy IPO Price: ₹102 to ₹108 per share
IPO Dates: 19 November 2024 – 22 November 2024
Company Overview
Incorporated on April 7, 2022, NTPC Green Energy Ltd (NGEL) operates as a wholly-owned subsidiary of NTPC Ltd, a ‘Maharatna’ central public sector enterprise. NGEL is a renewable energy-focused company committed to generating solar and wind power, with a significant operational capacity across India. As of September 30, 2024, it held the title of the largest renewable energy public sector enterprise in terms of operating capacity, excluding hydro, and power generation.
Business Model and Revenue Generation
NGEL generates revenue through Power Purchase Agreements (PPAs) with Indian government agencies and public utilities, selling solar and wind power. As of September 30, 2024, the company had a diverse portfolio of renewable energy projects, comprising 3,220 MW in solar power and 100 MW in wind power, spread across six states. Additionally, NGEL benefits from its parent company NTPC’s extensive experience in managing relationships with State Distribution Companies (DISCOMs), financial institutions, and executing large-scale power projects.
Portfolio and Project Pipeline
The company boasts a substantial portfolio totaling 16,896 MW, which includes 3,320 MW of operational projects and 13,576 MW of contracted and awarded projects. This extensive portfolio, combined with its pipeline, brought NGEL’s capacity to 26,071 MW as of September 30, 2024. The company continues to expand its renewable energy footprint, constructing 36 renewable energy projects across six states, covering a capacity of 13,576 MW. To support these projects, NGEL owns approximately 8,900 acres of freehold land and around 45,700 acres of leasehold land.
Long-Term Agreements with Offtakers
NGEL maintains a strong customer base with 17 offtakers across 41 solar and 11 wind projects. Nine of these offtakers are government agencies and public utilities engaged in long-term PPAs, averaging 25 years. This long-term commitment contributes to the company’s steady revenue stream and provides a reliable foundation for sustained operations.
Parent Company Support and Financial Stability
NGEL’s position as a subsidiary of NTPC Ltd lends it considerable support in terms of experience, relationships, and financial security. NTPC’s established expertise in large-scale project execution and dealings with government entities further enhances NGEL’s ability to expand its portfolio. NGEL’s financial robustness is reflected in its strong balance sheet and AAA rating from CRISIL, achieved on May 8, 2024, which contributes to its healthy interest coverage ratio.
Competitive Strengths
NTPC Green Energy Ltd leverages several competitive advantages:
- Promoter Strength: Supported by NTPC’s extensive project management experience and established relationships with offtakers and suppliers, NGEL has a solid foundation for growth.
- Portfolio Diversity: The company’s renewable energy portfolio, spanning 16,896 MW of solar and wind projects as of September 30, 2024, is diversified across geographies and offtakers, reducing dependency on any single region or entity.
- Experienced Team: NGEL’s skilled team manages the end-to-end processes of renewable energy projects, including procurement, construction, and maintenance.
- Financial Stability and Low-Cost Capital: With a strong credit rating and stable revenue, NGEL benefits from a lower cost of capital, which supports its growth initiatives.
- Experienced Management: NGEL’s leadership brings expertise in renewable energy, ensuring that the company remains competitive and adaptable to changing market demands.
Bidding Starts In
NTPC Green Energy IPO Specifics:
| IPO Date | November 19, 2024 to November 22, 2024 |
| Listing Date | Wednesday, November 27, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹102 to ₹108 per share |
| Lot Size | 138 Shares |
| Total Issue Size | 925,925,926 shares (aggregating up to ₹10,000.00 Cr) |
| Fresh Issue | 925,925,926 shares (aggregating up to ₹10,000.00 Cr) |
| Employee Discount | ₹5 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 7,500,000,000 |
| Share holding post issue | 8,425,925,926 |
NTPC Green Energy IPO Timetable (Important Dates)
| IPO Open Date | Tuesday, November 19, 2024 |
| IPO Close Date | Friday, November 22, 2024 |
| Basis of Allotment | Monday, November 25, 2024 |
| Initiation of Refunds | Tuesday, November 26, 2024 |
| Credit of Shares to Demat | Tuesday, November 26, 2024 |
| Listing Date | Wednesday, November 27, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on November 22, 2024 |
NTPC Green Energy IPO Lot Size
Bidders have the opportunity to bid for a minimum of 138 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 138 | ₹14,904 |
| Retail (Max) | 13 | 1,794 | ₹1,93,742 |
| S-HNI (Min) | 14 | 1,932 | ₹2,08,656 |
| S-HNI (Max) | 67 | 9,246 | ₹9,98,568 |
| B-HNI (Min) | 68 | 9,384 | ₹10,13,472 |
NTPC Green Energy IPO Reservation
| QIB Shares Offered | Not more than 75% of the Net offer |
| Retail Shares Offered | Not less than 10% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
NTPC Green Energy Limited IPO Financial Information
NTPC Green Energy Limited witnessed a remarkable surge in its revenue by an impressive 1094.19% and experienced a substantial growth of 101.32% in profit after tax (PAT) during the period spanning from the fiscal year ending on March 31, 2023, to March 31, 2024.
| Period Ended | 31 Mar 2023 | 31 Mar 2024 | 30 Sep 2024 |
|---|---|---|---|
| Assets | 18431.40 | 27206.42 | 32408.30 |
| Revenue | 170.63 | 2037.66 | 1132.74 |
| Profit After Tax | 171.23 | 344.72 | 175.30 |
| Net Worth | 6232.14 | 8189.18 | |
| Reserves and Surplus | 167.88 | 512.60 | 596.08 |
| Total Borrowing | 12796.74 | 17057.50 |
Key Performance Indicator – NTPC Green Energy IPO
| KPI | Values |
|---|---|
| Market Cap | ₹ 91,000 Cr. |
| EPS | ₹0.46 |
| P/E (x) | 234.97 |
| ROE | 7.39% |
| Debt/Equity | 1.91 |
| RoNW | 2.14% |
| P/BV | 9.89 |
Objects of the Issue:
The company intends to utilize the Net Proceeds for the following purposes:
- Investment in its wholly-owned subsidiary, NTPC Renewable Energy Limited (NREL), to facilitate the repayment or prepayment, in full or in part, of certain outstanding borrowings by NREL.
- General corporate purposes.
Prospectus Links:
Prospectus: Official documents that provide detailed information about the IPO and the company.
