Back
PremiumNTPC Green Energy IPO LIVE Updates: NTPC Green Energy, the clean energy arm of NTPC, launches its initial public offering for public subscription today (Tuesday, November 19). Prior to the IPO, NTPC Green Energy has secured ₹3,960 crore from anchor investors.
The government-owned NTPC Green Energy IPO was subscribed 33% on the first day. The subscription was led by the retail investors booking 1.33 times the shares offered.
The Non-Institutional Investors (NII) portion was subscribed 16% of the shares on offer, while the qualified institutional buyers (QIBs) portion received no bids on the first day.
The initial share sale, valued at ₹10,000 crore, consists solely of new equity shares, with no portion allocated for an offer-for-sale (OFS). The public can subscribe to the issue, which has a price range set between ₹102 and ₹108 per share, from November 19 to November 22. Of the proceeds from the IPO, amounting to ₹7,500 crore, a significant portion will be directed towards repaying or prepaying some or all outstanding loans of its subsidiary, NTPC Renewable Energy Ltd (NREL), while a part will also be set aside for general corporate needs.
NTPC Green Energy is a central public sector enterprise designated as 'Maharatna', focusing on renewable energy with solar and wind power installations across more than six states.
The NTPC group has set a goal to achieve 60 GW of renewable energy capacity by 2032. At present, it has 3.5 GW of capacity already installed, with an additional over 28 GW currently in development.
Stay tuned for more updates
NTPC Green Energy IPO LIVE: As of November 19, the State-owned NTPC Green Energy Limited's initial public offer has a grey market premium (GMP) of ₹1.15 per share.
Grey market premium is the investors' willingness to pay more for a public issue. With the upper price band at ₹108, the shares are expected to be listed on the stock markets at ₹109.15 per share, a premium of 1.06%, according to Investorgain.com.
NTPC Green Energy IPO LIVE: The government-owned NTPC Green Energy IPO was subscribed 33% on the first day. The subscription was led by the retail investors booking 1.33 times the shares offered.
The Non-Institutional Investors (NII) portion was subscribed 16% of the shares on offer, while the qualified institutional buyers (QIBs) portion received no bids on the first day.
NTPC Green Energy IPO LIVE: The NTPC Green Energy IPO has been subscribed 32% so far on Day 1.
The portion of retail investors is leading the first day of the IPO as the segment receives 1.31 times the subscription offered. The Non-Institutional Investors (NIIs) subscribed 15% as of now. The qualified institutional buyers (QIBs) portion is yet to be booked.
The initial public offer of NTPC Green Energy IPO has been subscribed 31% on the first day of subscription today, at 15:57 IST, as per BSE data.
The initial share sale received bid for 18,22,37,142 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 1.27 times subscription while the quota for non-institutional investors got subscribed 13%. The qualified institutional buyers (QIBs) part is yet to be booked. The shareholder portion has been subscribed 54%, and the employee portion has been booked 16%.
The Green Hydrogen Hub established by the company in Andhra Pradesh covers an area of 1,200 acres, concentrating on the production of green hydrogen and its derivatives, as well as the manufacturing of renewable components. Designed as a “plug-and-play" facility, the site is equipped with essential infrastructure to facilitate the production of electrolyzers, fuel cells, and battery storage.
With 600 acres designated for the production of green chemicals, this hub will host India’s largest green hydrogen facility, which will generate hydrogen derivatives for both domestic use and international markets. This initiative is projected to draw substantial investment, resulting in economic growth and job opportunities in Andhra Pradesh.
The initial public offer of NTPC Green Energy IPO has been subscribed 23% on the first day of subscription today, at 14:57 IST, as per BSE data.
The initial share sale received bid for 16,80,30,870 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 1.18 times subscription while the quota for non-institutional investors got subscribed 12%. The qualified institutional buyers (QIBs) part is yet to be booked. The shareholder portion has been subscribed 49%, and the employee portion has been booked 15%.
“NTPC Green’s reliance on a small group of utility companies and power purchasers makes it vulnerable to the potential loss or financial instability of these key clients, which could adversely affect its business, financial performance, and overall health. Additionally, the company’s success and profitability are heavily dependent on the availability and costs of critical resources such as solar modules, solar cells, wind turbine generators, and other essential equipment for its renewable energy projects," said the brokerage.
The company is promoted by its parent organisation, NTPC Limited, which is the largest power company in India by installed capacity as of March 31, 2024, and power output in Fiscal 2024. NTPC is a publicly owned enterprise managed under the auspices of the Ministry of Power (“MOP") of the Government of India (“GoI").
The initial public offer of NTPC Green Energy IPO has been subscribed 23% on the first day of subscription today, at 13:27 IST, as per BSE data.
The initial share sale received bid for 13,50,59,634 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 95% subscription while the quota for non-institutional investors got subscribed 9%. The qualified institutional buyers (QIBs) part is yet to be booked. The shareholder portion has been subscribed 40%, and the employee portion has been booked 12%.
As per the red herring prospectus (RHP), the company's listed peers are Adani Green Energy Ltd (with a P/E of 259.83), and ReNew Energy Global PLC (with a P/E of 47.05).
“NTPC Green Energy Ltd is one of the top 10 renewable energy players in India in-terms of operational capacity as of Sep-24. At the upper band of INR 108, the issue is valued at an EV/EBITDA of 61.3x based on FY24 EBITDA and PE of 264x based on FY24 EPS of ₹0.41. We are recommending a “Subscribe for Long Term" rating for aggressive investors on this issue," the brokerage said.
The initial public offer of NTPC Green Energy IPO has been subscribed 20% on the first day of subscription today, at 12:39 IST, as per BSE data.
The initial share sale received bid for 11,62,95,912 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 83% subscription while the quota for non-institutional investors got subscribed 7%. The qualified institutional buyers (QIBs) part is yet to be booked. The shareholder portion has been subscribed 34%, and the employee portion has been booked 11%.
According to Rajan Shinde, Research Analyst, Mehta Equities Ltd, NTPC Green Energy Ltd IPO brings investors an opportunity to invest in a leading player of India’s renewable energy sector, backed by the formidable resources and expertise of NTPC Ltd.
"On valuation parse at the upper price band Rs. 108/-, the issue is asking a Market Cap of Rs. 91000 cr and based on FY 2025e annualised earnings and fully diluted post IPO paid-up capital, the company is asking for a PB of 4.96x and PE of 259.56x which appears aggressively priced.
As Supported by NTPC’s financial strength and ambitious renewable energy targets, the company is well-equipped to capitalize on the increasing demand for sustainable energy solutions. Hence, looking at attributes we recommend only risk taking investors to “SUBSCRIBE" the NTPC Green Energy Ltd IPO for long term perspective only," said Shinde.
The company, in collaboration with the NTPC Group, has a proven history of developing, constructing, and operating renewable energy projects, supported by skilled in-house management and procurement teams. NGEL’s internal team collaborates with third-party aggregators, developers, and EPC contractors to oversee the land acquisition process. As of September 2024, the company possesses approximately 8,900 acres of freehold land and around 45,700 acres of leasehold land.
NTPC Green Energy boasts a significant collection of large-scale solar and wind energy initiatives, along with projects catering to public sector undertakings (PSUs) and Indian companies. As of September 2024, the organization served 17 off-takers through its 41 solar and 1 wind project.
The overall portfolio as of September 2024 comprises 26,071 MW, which includes 3,320 MW of operational projects, 13,576 MW of projects that have been contracted and awarded, and 9,175 MW of capacity that is in the pipeline.
The geographical distribution of NTPC Green Energy’s portfolio spans Rajasthan, Gujarat, Tamil Nadu, Andhra Pradesh, Madhya Pradesh, and Uttar Pradesh, which aids in reducing risks associated with generation variability tied to specific locations.
The initial public offer of NTPC Green Energy IPO has been subscribed 11% on the first day of subscription today, at 11:12 IST, as per BSE data.
The initial share sale received bid for 7,00,25,754 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 50% subscription while the quota for non-institutional investors got subscribed 4%. The qualified institutional buyers (QIBs) part is yet to be booked. The shareholder portion has been subscribed 20%, and the employee portion has been booked 6%.
NTPC green energy limited is one of the top players in renewable energy players in India and aims to strengthen its position in core solar and wind energy businesses and focus on new geographies and new offtaker customers. The company is also investing in new energy solutions like green hydrogen, green chemicals and storage capabilities and solutions. Investors looking to invest can invest in the IPO for the long term.
The initial public offer of NTPC Green Energy IPO has been subscribed 2% on the first day of subscription today, at 10:15 IST, as per BSE data.
The initial share sale received bid for 1,33,17,138 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 11% subscription while the quota for non-institutional investors got subscribed 1%. The qualified institutional buyers (QIBs) part is yet to be booked. The shareholder portion has been subscribed 2%, and the employee portion has been booked 1%.
“The company is well placed to capture the tailwind from capacity addition in renewables owing to its strong parentage (NTPC), low operating costs along with diversified capacity portfolio and access to lower cost of capital. Therefore we believe that this issue may be considered for its long term growth. Hence we give “SUBCRIBE for LONG TERM" rating to this IPO," the brokerage said.
NTPC Green Energy has experienced a revenue growth rate of 46.82%, increasing from ₹910.42 crore in the fiscal year 2022 to ₹1,962.60 crore in the fiscal year 2024. The profit after tax has seen a compound annual growth rate (CAGR) of 90.75%, rising from ₹94.74 crore in fiscal 2022 to ₹344.72 crore in fiscal 2024.
For the quarter ending June 30, 2024, operational revenue reached ₹578.44 crore, while the profit after tax was ₹138.61 crore, with both amounts calculated on a restated basis.
NTPC Green Energy IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. Employees have been reserved equity shares aggregating up to 20 crore, and a discount of ₹5 per equity share is being offered to eligible employees.
“The company has exponential growth potential in medium term with its Revenue/EBITDA/PAT expected to grow at a CAGR of 79.0%/117.2%/123.8% to ₹11,250 cr/9,563 cr/1,980 cr respectively over FY24-27E period. We recommend investors to subscribe to the issue at cut-off price for long term," the brokerage said.
NTPC Green Energy Limited has raised Rs. 3,960 crores from anchor investors on Monday, November 18. The company notified the stock exchanges that it issued 36,66,66,666 equity shares at Rs. 108 per share on Monday, November 18, 2024, to its anchor investors. Among the foreign institutions that took part in the anchor investment were Capital World, Goldman Sachs, GIC, T. Rowe Price, Abu Dhabi Investment Authority, Morgan Stanley, Allianz Global, and several others.
Domestic institutions that took part in the anchor included Life Insurance Corporation of India, ICICI Prudential Mutual Fund, Nippon Life India Mutual Fund, Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, DSP Mutual Fund, White Oak, Baroda BNP Mutual Fund, Canara Robeco Mutual Fund, Edelweiss Mutual Fund, among others.
NTPC Green Energy IPO GMP today is +0.70. This indicates NTPC Green Energy share price was trading at a premium of ₹0.70 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of NTPC Green Energy share price is indicated at ₹108.7 apiece, which is 0.65% higher than the IPO price of ₹108.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
