The NTPC Green Energy IPO is one of the most anticipated public offerings in the Indian renewable energy sector. As a subsidiary of the renowned NTPC Limited, a ‘Maharatna’ public sector enterprise, NTPC Green Energy has a significant presence in India’s growing renewable energy market. In this article, we will explore everything you need to know about the NTPC Green Energy IPO 2024, including the IPO date, share price, GMP, and much more. So, whether you’re an experienced investor or a beginner looking to dive into the stock market, this guide will provide you with all the essential information.
What is NTPC Green Energy?
NTPC Green Energy Limited is a wholly-owned subsidiary of NTPC Limited, India’s largest power utility. Incorporated in 2022, NTPC Green Energy focuses on renewable energy, with a portfolio that includes solar and wind power projects. The company operates in over six states, contributing significantly to India’s renewable energy capacity.
As of August 31, 2024, NTPC Green Energy has an operational capacity of 3,071 MW in solar power and 100 MW in wind energy. With an ambitious target of adding 60 GW of renewable energy capacity by 2032, the company aims to generate nearly 15% of India’s total renewable energy capacity.
Key Highlights of NTPC Green Energy IPO 2024
- IPO Size: ₹10,000 crores
- Fresh Issue: ₹10,000 crores (No Offer for Sale)
- Price Band: ₹102 to ₹108 per share
- IPO Date: November 19, 2024, to November 22, 2024
- Listing Date: November 27, 2024
- Lot Size: Minimum of 138 shares
- Employee Discount: ₹5 per share
- Market Capitalization: ₹91,000 crores
What are the Objectives of the NTPC Green Energy IPO?
The NTPC Green Energy IPO aims to raise funds to support the company’s long-term growth and business objectives. The proceeds from the IPO will be used for:
- Debt Reduction: A significant portion (75%) of the funds raised will be used to reduce the outstanding debt of NTPC Renewable Energy Limited (NREL), a wholly-owned subsidiary of NTPC Green Energy.
- General Corporate Purposes: The remaining 25% will be used for general corporate expenses and strengthening the business operations.
NTPC Green Energy IPO Price, Dates & Details
1. NTPC Green Energy IPO Date 2024
The NTPC Green Energy IPO will open for subscription on November 19, 2024 and will close on November 22, 2024. The shares will be allotted on November 25, 2024, and the listing will take place on the BSE and NSE on November 27, 2024.
2. NTPC Green Energy IPO Price
The price band for the NTPC Green Energy IPO is set between ₹102 and ₹108 per share. The shares are available in lots of 138 shares, with the minimum investment amount being ₹14,904 for retail investors.
3. NTPC Green Energy Share Price
The share price of NTPC Green Energy is expected to be in the range of ₹102 to ₹108 per share. Considering the size and market presence of NTPC, it is an exciting offering for investors looking for exposure to the renewable energy sector.
Financial Performance of NTPC Green Energy
As of March 31, 2024, NTPC Green Energy has shown significant growth in its financials. Its revenue for FY 2023-24 increased by an impressive 1094.19%, while the Profit After Tax (PAT) rose by 101.32%.
Key Financial Metrics:
- Revenue: ₹2,037.66 crores (FY 2023-24)
- PAT: ₹344.72 crores (FY 2023-24)
- Net Worth: ₹8,189.18 crores (as of September 2024)
- Total Borrowing: ₹17,057.50 crores
NTPC Green Energy is positioned to benefit from the ongoing push toward sustainable energy solutions in India, especially with government policies favoring the growth of solar and wind power.
Strengths of NTPC Green Energy
- Strong Backing of NTPC Limited: NTPC Green Energy benefits from the extensive experience and financial strength of its parent company, NTPC Limited, one of the largest energy providers in India.
- Diverse Portfolio: The company has a portfolio of 14,696 MW in solar and wind energy, with a presence in multiple states across India, reducing geographic risks.
- Stable Revenue from Off-Takers: NTPC Green Energy has signed long-term Power Purchase Agreements (PPAs) with 15 off-takers, ensuring steady revenue from its renewable energy projects.
- Industry Leadership: NTPC Green Energy is one of the top 10 renewable energy players in India as of June 2024.
Risks Associated with NTPC Green Energy
- Construction Risks: The company faces the risk of cost overruns or delays in the construction of its renewable energy projects, which could impact its financial performance.
- Geographic Concentration: A significant portion of NTPC Green Energy’s operational projects is concentrated in Rajasthan. Any political, social, or environmental disruptions in the region could negatively affect its operations.
- Dependence on Large Off-Takers: The company’s revenue is concentrated, with over 87% of its revenue coming from just five major off-takers, including a single largest off-taker contributing around 50% of its revenue.
- High Capital Expenditure: With significant capital expenditure requirements, NTPC Green Energy may need to raise additional funds, which could increase financial pressure.
NTPC Green Energy IPO: Should You Subscribe?
With the increasing demand for renewable energy in India, the NTPC Green Energy IPO presents a promising opportunity for investors. However, like any investment, it comes with its share of risks. Here are the key points to consider before subscribing:
- Promising Sector: The renewable energy sector in India is growing rapidly, and NTPC Green Energy is well-positioned to benefit from this growth.
- Strong Parent Company: Backed by NTPC Limited, one of India’s largest power utilities, NTPC Green Energy has a robust foundation.
- Growth Potential: The company has ambitious plans to expand its renewable energy capacity to 60 GW by 2032, which is likely to boost long-term growth.
- Financials: With strong financials and a large portfolio, NTPC Green Energy is on the path to becoming a significant player in India’s renewable energy market.
Based on these factors, investors with a long-term outlook may consider subscribing to the NTPC Green Energy IPO.
How to Apply for the NTPC Green Energy IPO
To apply for the NTPC Green Energy IPO 2024, follow these simple steps:
- Choose a Broker: Open a Demat and Trading account with a registered stockbroker like Zerodha, Upstox, or Angel One.
- Log In to Your Account: Once your account is active, log in and search for the NTPC Green Energy IPO.
- Fill in Details: Enter the quantity of shares and price band (₹102 to ₹108 per share), and choose the type of order (Retail or HNI).
- UPI Mandate: Confirm the payment through the UPI mandate process.
- Submit Your Application: After reviewing all details, submit your application for the IPO.
NTPC Green Energy IPO FAQ
1. What is the IPO date for NTPC Green Energy?
The NTPC Green Energy IPO will open for subscription on November 19, 2024, and close on November 22, 2024.
2. What is the price band for NTPC Green Energy shares?
The price band for the NTPC Green Energy IPO is set at ₹102 to ₹108 per share.
3. What is the minimum investment in the NTPC Green Energy IPO?
The minimum lot size for retail investors is 138 shares, which amounts to ₹14,904.
4. When will the NTPC Green Energy IPO be listed?
The listing date for the NTPC Green Energy IPO is scheduled for November 27, 2024.
5. How to check NTPC Green Energy IPO GMP?
The GMP (Grey Market Premium) for the NTPC Green Energy IPO will be available closer to the IPO date, and you can check this on various financial websites and forums.
6. What is NTPC Green Energy’s market capitalization?
The market capitalization of NTPC Green Energy is estimated at ₹91,000 crores.
Conclusion
The NTPC Green Energy IPO 2024 is an exciting opportunity for investors looking to capitalize on the growth of the renewable energy sector in India. Backed by NTPC Limited, the company is well-positioned to take advantage of the country’s ambitious renewable energy targets. However, as with any investment, it is essential to consider both the potential rewards and the associated risks before applying.
If you are looking to invest in a green energy company with solid backing and growth potential, the NTPC Green Energy IPO could be a smart choice. Be sure to stay updated on the latest developments and consult with a financial advisor to make an informed decision.
for more information visit topindiatips.com
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as investment advice. Always consult a financial advisor before making any investment decisions.