NTPC Green Energy IPO opens tomorrow. GMP, date, review, other details in 10 points

NTPC Green Energy IPO: The initial public offering (IPO) of state-run NTPC Green Energy Ltd is set to hit Dalal Street on Tuesday, November 19. The renewable energy company, NTPC Green Energy is a subsidiary of NTPC Ltd and plans to raise ₹10,000 crore from the primary market.

NTPC Green Energy IPO is entirely a fresh issue of shares and the company is seeking a valuation of nearly ₹1 lakh crore from this IPO.

Ahead of the issue opening, let us take a look at NTPC Green Energy IPO price band, dates and other key details.

NTPC Green Energy IPO: 10 things to know

1] NTPC Green Energy IPO Dates: NTPC Green Energy IPO opens for public subscription on Tuesday, November 19, and closes on Friday, November 22.

2] NTPC Green Energy IPO Price Band: NTPC Green Energy IPO price band is set at ₹102 to ₹108 per share.

3] NTPC Green Energy IPO Details: At the upper-end of the price band, the company plans to raise ₹10,000 crore from the book-built issue which is entirely a fresh issue of 92.59 crore equity shares.

4] NTPC Green Energy IPO Lot Size: NTPC Green Energy IPO lot size is 138 shares. The minimum investment amount required by retail investors is ₹14,904.

5] NTPC Green Energy IPO Reservation: The company has reserved 75% of the net issue for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors, and the remaining 10% for Retail Investors.

6] NTPC Green Energy IPO Objective: The company proposes to utilise the net issue proceeds towards investment in the wholly owned subsidiary, NTPC Renewable Energy Ltd (NREL), and for general corporate purpose.

7] NTPC Green Energy IPO Allotment and Listing Date: NTPC Green Energy IPO allotment date is likely to be on November 25. The company will credit the equity shares into the demat accounts of eligible investors on November 26 and initiate refunds to unsuccessful bidders on the same day. NTPC Green Energy IPO listing date is likely on November 27. NTPC Green Energy shares will be listed on both the stock exchanges, BSE and NSE.

8] NTPC Green Energy IPO BRLM, Registrar: IDBI Capital Market Services, HDFC Bank, IIFL Securities and Nuvama Wealth Management are the book running lead managers of the NTPC Green Energy IPO, while Kfin Technologies is the IPO registrar.

9] NTPC Green Energy IPO GMP Today: NTPC Green Energy shares are showing a muted trend in the unlisted market. According to stock market observers, NTPC Green Energy IPO GMP today, or grey market premium today, is Re 1 per share. This shows that in the grey market, NTPC Green Energy shares are trading higher by ₹1 apiece than their issue price. The trends in GMP indicates that NTPC Green Energy shares are trading at ₹109 per share in the grey market, a premium of 0.9% to the IPO price of ₹108 per share.

10] NTPC Green Energy IPO Review: According to Reliance Securities, NTPC Green Energy Ltd benefits from NTPC’s financial strength and long-term relationships with off takers and suppliers, growing its revenues along with strong credit ratings that enable a low cost of debt executing large scale projects.

“NTPC Green Energy has deep domain expertise of the management team focusing on new energy solutions like green hydrogen, green chemicals and storage with prudent growth and contributing towards fulfilling India’s net zero goals. We believe with a prudent business model and strong earnings growth with improved financials and return ratios, we recommend a Subscribe to the issue for the long term,” Reliance Securities said.

About NTPC Green Energy Ltd

NTPC Green Energy Ltd is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of September 2024 and power generation in FY24. Its renewable energy portfolio encompasses both solar and wind power assets with presence across multiple locations in more than six states. Its operational capacity was 3,220 MW of solar projects and 100 MW of wind projects as of September 2024.

The company’s revenue increased from ₹910 crore in FY22 to ₹1,963 crore in FY24 which grew by a CAGR of 46.8% with improvement in margins and profitability as net profit has grown at a CAGR of 90.8% for the same period.

Its average capacity utilization factor (CUF) for the assets has improved from 19.2% to 23.9% in solar from FY22-24 with an 3x increase in generation of power. NTPC Green Energy has share of 17% in installed and 24% share in power generation as of September 2024 and has 26 GW+ of portfolio + pipeline in solar and wind projects across geographies with an average age of 25 years of PPA and holds a vision of 60 GW RE capacity by 2032.

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