Introduction
NTPC Green Energy Limited, a major subsidiary of NTPC, is gearing up to launch its ₹10,000 crore IPO this fiscal year. With growing interest in renewable energy, this IPO could offer investors a promising entry into the green sector. This blog explores everything you need to know about NTPC Green’s upcoming IPO, including eligibility, price bands, financial performance, and market sentiment.
What Is NTPC Green Energy?
Overview of NTPC Green’s Background
NTPC Green Energy Limited (NGEL) was launched as a fully owned subsidiary of NTPC in April 2022, with a clear focus on renewable energy, spanning solar and wind projects. The company has grown rapidly, boasting 14,696 MWs in renewable energy projects, with a further 10,975 MW pipeline. NGEL’s success is backed by NTPC’s expertise and strong partnerships, positioning it as a dominant renewable energy player.
Also Read: Afcons Infrastructure Sets Stage for ₹5430 Cr IPO
IPO Key Dates and Structure
- Red Herring Prospectus (RHP): Filed on November 11, 2024.
- IPO Launch Date: Expected around November 18, 2024.
- IPO Type: 100% fresh issue (₹10,000 crore) with no offer-for-sale component.
- Reservation Quotas:
- Shareholder Quota: NTPC shareholders as of the RHP date are eligible.
- Employee Quota: A discount for eligible employees.
NTPC Green’s Financial Performance
Financial Highlights
| Financial Year | Revenue (₹ crore) | Profit After Tax (₹ crore) | Revenue Growth (%) | PAT Growth (%) |
| FY22 | 910.42 | 94.74 | – | – |
| FY23 | 170.63 | 171.23 | 10.94 | 1.01 |
| FY24 | 2,037.66 | 344.72 | 0.95 | 0.9075 |
The financial growth, particularly in revenue and profit after tax (PAT), reflects NGEL’s operational expansion. However, profitability still trails some industry peers, showing areas for further growth.
IPO Price Band and Market Sentiment
- Expected Price Band: Likely to be between ₹100 – ₹120 per share.
- Grey Market Premium (GMP): Currently stands at ₹24.
- Kostak Rate: Around ₹500, indicating moderate demand.
The price and GMP are reasonable indicators, but investor sentiment will continue to shape the actual demand.
Where the Funds Will Go
NTPC plans to allocate ₹7,500 crore for NTPC Renewable Energy Limited (NREL) to reduce existing debts. The rest will support general corporate needs, strengthening the financial position of NTPC’s renewable sector.
Analyst Opinions and Market Potential
Analysts from ICICI Securities have highlighted NTPC Green’s operational capacity (3.2GW), contracted projects (12GW), and future development pipeline (11GW). NTPC Green’s venture aligns with India’s growing demand for renewable energy sources, potentially making it a profitable investment.
Also read: Read Godavari Biorefineries IPO Details
Key Insights
| Metric | NTPC Green | Adani Green | ReNew Energy |
| Price-to-Book | Lowest | Highest | Moderate |
| Earnings Per Share | Lower | Higher | Moderate |
| Return on Net Worth | 5.53% | 12.81% | 3.94% |
| Net Asset Value/share | ₹10.90 | ₹62.08 | ₹290.15 |
While Adani Green and ReNew Energy have higher returns, NTPC’s low price-to-book ratio may attract value-focused investors looking for a long-term green energy play.
Also Read: Waaree Energies IPO 2024: Dates, price, and investment details
How to Increase IPO Allotment Chances
For retail investors looking to secure NTPC Green IPO shares, one option is to hold NTPC shares by the RHP date, which qualifies them for the shareholder quota.
You may also like: Physics Wallah Prepares to Launch $500 Million IPO – Shortlists 4 I Banks
Conclusion
NTPC Green Energy’s IPO represents an exciting opportunity in India’s renewable energy landscape. Its financial trajectory, backed by NTPC’s legacy, makes it appealing, particularly for those keen on long-term growth in sustainable energy. However, the competitive landscape, with key players like Adani Green, remains a factor. This IPO could be a strong addition for those aligning their portfolios with the country’s green energy vision.
