NTPC Green Energy IPO: From Date, Size, Price, GMP, Review, Allotment, To Listing, Key Details Here

NTPC Green Energy IPO: The NTPC-backed Green Energy IPO is much awaited public offer in November 2024. The Rs 10,000 crore IPO has received a green signal from market regulator Sebi. The proposed shares are set to list on BSE and NSE, competing against Adani Green Energy.

Notably, the upcoming IPO is likely to lift Maharatna PSU energy giant, NTPC Ltd share price as well.

As per a Jefferies report earlier, there are few pure-play listed renewable energy (RE) generation companies in India. NTPC Green (NGEL) has 3.2 GW operational now, including 3.1 GW solar and 100 MW wind. The company plans to ramp up 19x to 60 GW by 2032, implying a 44% capacity CAGR. Assuming a 10-15% stake dilution and NTPC's RE is at a 2x premium to its coal business, it could potentially add 5-11% upside on the current market price.

Here are key things to know about the IPO:

1. The Rs 10,000 crore IPO is expected to be launched later in November. Accordingly, the dates of the IPO, price band, and anchor investors' bidding will be announced in due course.

2. The IPO filed its draft prospectus with Sebi on September 18, 2024. The public offer is purely a fresh issue worth Rs 10,000 crore.

3. The IPO size will be reserved for qualified institutional buyers (QIBs), non-institutional investors (NIIs), retail individual investors (RII) and employees.

4. Booking running lead managers of the IPO are IDBI Capital Markets & Securities, HDFC Bank, IFL Securities, and Nuvama Wealth Management. The registrar of the IPO is KFinTechnologies

5. The proceeds of the IPO will be used for investment in its wholly owned subsidiary, NTPC Renewable Energy Limited (NREL) for repayment/ prepayment, in full or in part of certain outstanding borrowings availed by NREL. The investment will be to the tune of Rs 7,500 crore. A portion will be kept for general corporate purposes among others.

6. GMP: The last grey market premium (GMP) on IPO Central for NTPC Green Energy stood at Rs 34 per share. While Rs 6,500 was subject to SAUDA.

7. Price BAND: As per ICICI Direct's website, the price band is likely to be in the range of INR 100-120 per share, depending on market conditions at the time of the listing.

8. After the IPO, the other processes are allotment of shares, initiation of refunds, credit of equity shares, and listing. Proposed equity shares will be listed on BSE and NSE.

9. Here are some key areas where NTPC Green Energy is making strides as per ICICI Direct:

• Solar Energy: NGEL has already commissioned several large-scale solar power plants across India. These plants harness the abundant sunlight in India to generate electricity for millions of households and businesses.
• Wind Energy: NGEL is also investing in wind power projects, taking advantage of India's vast coastal and inland wind corridors.
• Hybrid Projects: The company is increasingly focused on hybrid renewable energy projects, which combine solar and wind energy to ensure more consistent power generation.
• Green Hydrogen Initiatives: As part of its long-term vision, NGEL is exploring the potential of green hydrogen, which can be used to store and transport renewable energy.

10. While financial insights highlighted by ICICI Direct are:

• Revenue Growth: There was a significant increase in revenue, from INR 170.60 crore in FY 2023 to INR 2,028.69 crore in FY 2024, showcasing strong operational performance.
• Profit Growth: NTPC Green Energy's profit also grew sharply, more than doubling from INR 174.44 crore in FY 2023 to INR 370.47 crore in FY 2024.
• Asset Growth: Total assets increased from INR 16,878.85 crore in FY 2023 to INR 18,321.83 crore in FY 2024, indicating expansion and investment in projects.