| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 102 to ₹ 108 | 138 | 19th Nov, 2024 – 22nd Nov, 2024 | ₹ 10,000.00 Cr |
About NTPC Green Energy Limited IPO
NTPC Green Energy Limited, incorporated in April 2022, is a wholly-owned subsidiary of NTPC Limited, a ‘Maharatna’ Central Public Sector Enterprise. It is India’s largest renewable energy public sector enterprise (excluding hydro) based on operational capacity and power generation. Its renewable energy portfolio includes 3,220 MW of solar power and 100 MW of wind power, strategically located across more than six states to mitigate risks associated with location-specific generation variability. As of September 30, 2024, its portfolio consisted of 3,320 MWs of operating projects and 13,576 MWs of contracted and awarded projects. The company develops utility-scale renewable energy projects for public sector undertakings (PSUs) and Indian corporates. These projects feed renewable power into the grid, supplying energy to utilities or off-takers. The company benefits from the expertise, resources, and strategic vision of NTPC Limited, which operates under the Ministry of Power, Government of India (GoI) and its consolidated subsidiaries, associates and joint ventures (NTPC Group) that aims to transition 45-50% of its portfolio to non-fossil-based energy sources, targeting a renewable energy capacity of 60 GW by 2032. NTPC Group has strong in-house experience, which helps in the execution and procurement of renewable energy projects. Many PSUs have chosen the company as a partner to fulfil their renewable energy development goals. The company regularly evaluates its plant performance by focusing on key industry measures and generation/capacity utilization factor (CUF), which is lower in solar power plants than in thermal power plants, given the nature of operations. The company has established joint ventures with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), Mahatma Phule Renewable Energy & Infrastructure Technology Limited (MAHAPRET), and Damodar Valley Corporation (DVC), among others, to produce renewable power. Additionally, NGEL has signed MOUs and term sheets with private corporations to expand its footprint further.
Objective of the NTPC Green Energy Limited IPO
The company proposes to utilize the net proceeds towards funding the following objects:
- 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; and
- General corporate purposes.
Rationale To Invest In NTPC Green Energy Limited IPO
Robust backing from NTPC and strategic resource utilization fuel growth
NTPC Green Energy is one of the top 10 players in terms of operational capacity in the renewable energy segment in India. As the renewable energy arm and subsidiary of NTPC Ltd, the company benefits from NTPC’s legacy of five decades, long-term experience, extensive pan-India presence, top credit rating, and strong financial backing, including ₹75,000 million in equity contributions. The company boasts a skilled in-house team that collaborates with third-party contractors to manage land acquisition processes. Leveraging NTPC’s resources, strategic partnerships with PSUs, and robust market positioning, NTPC Green Energy aligns with NTPC’s target of achieving 60 GW of renewable capacity by 2032. The company utilizes its in-house expertise and publicly available data to assess the power evacuation capacity of nearby inter-state and intra-state substations, ensuring that project commissioning timelines are strategically aligned with the readiness of these substations for efficient power evacuation. The company leverages NTPC’s economies of scale to secure cost-effective procurement and maintains a rigorous quality assurance and vendor empanelment process from approved domestic and international suppliers. The selection of vendors is done by its in-house procurement team on the basis of commercial conditions, manufacturing capacity, track record, quality, warranty coverage, ease of installation and other ancillary costs. Furthermore, NTPC Green Energy integrates advanced O&M technologies, such as robotic dry cleaning of photovoltaic arrays, drone thermography, and live dashboards for generation performance monitoring, to enhance the operational efficiency of its plants.
Diversified renewable portfolio and long-term offtake agreements ensure stability
NTPC Green Energy has a large and diversified portfolio of utility-scale solar and wind energy projects, along with projects developed for PSUs and Indian corporates. As of September 30, 2024, the company’s portfolio includes 41 solar and 11 wind projects, with a total capacity of 16,896 MWs, comprising 3,320 MWs of operational projects and 13,576 MWs of contracted and awarded projects. The company’s pipeline capacity stands at 9,175 MWs, bringing the total portfolio and pipeline to 26,071 MWs. The company’s revenue-generating off-takers in the six months ending September 30, 2024, were government agencies and public utilities with whom NTPC Green Energy has long-term Power Purchase Agreements (PPAs) averaging 25 years. In the same period, renewable energy sales from solar and wind projects accounted for ~95.43% of the company’s revenue from operations. The company’s portfolio is primarily concentrated in resource-rich states like Rajasthan and Gujarat, which have strong potential for renewable energy development and have sustained healthy levels of demand for renewable energy. To mitigate concentration risks, NTPC Green Energy has expanded its projects across 7 other states in India. The company’s future growth is supported by a strong pipeline of development opportunities, with joint venture agreements signed with major PSUs such as Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), Mahatma Phule Renewable Energy & Infrastructure Technology Limited (MAHAPREIT), Damodar Valley Corporation (DVC), two other PSUs and through MOUs and term sheets with other private corporates.
Valuation of NTPC Green Energy Limited IPO
NTPC Green Energy, a wholly-owned subsidiary of NTPC Ltd., is one of the largest renewable energy public sector enterprises (excluding hydro) in terms of operating capacity and power generation, with a portfolio capacity of 3,220 MW of solar projects and 100 MW of wind projects across six states. The company generates revenue by selling solar and wind power under Power Purchase Agreements (PPAs) with Indian government agencies and public utilities. Renewable energy is a significant and growing industry in India, which ranks fourth globally in total renewable energy, wind, and solar installations. The country’s installed capacity of renewable energy sources has grown from approximately 63 GW in March 2012 to 201 GW in September 2024. NTPC Green Energy leverages NTPC’s five-decade legacy, extensive experience, strategic partnerships, advanced operations and maintenance (O&M) technologies, and in-house expertise to efficiently develop, procure, and operate renewable energy projects, aligning with NTPC’s target of achieving 60 GW of renewable capacity by 2032. The company boasts a diversified portfolio of 16,896 MW across solar and wind projects, a pipeline capacity of 9,175 MW, long-term PPAs with government agencies and public utilities, and widespread renewable energy development across India. On the financial front, the company’s revenue grew at a CAGR of 46.82% from Rs. 9,104.21 mn in FY22(on a special purpose carved-out basis) to Rs. 19,625.98 mn in FY24, with a PAT margin of 17.56%. It has demonstrated a Return on Equity of 17.76% in FY24. The company is valued at a PE ratio of 147.9 on the upper price band based on FY24 earnings, which is reasonable compared to its peers. Given its strategic development and strong financial growth, the company is well-positioned to capitalize on growth opportunities in the renewable energy sector. Therefore, we recommend a “SUBSCRIBE” rating for medium to long-term investment.
What is the NTPC Green Energy Limited IPO?
NTPC Green Energy IPO is a book built issue of Rs 10,000.00 crores. The issue is entirely a fresh issue of 92.59 crore shares. NTPC Green Energy IPO bidding opened for subscription on November 19, 2024 and will close on November 22, 2024. The allotment for the NTPC Green Energy IPO is expected to be finalized on Monday, November 25, 2024. NTPC Green Energy IPO will list on BSE, NSE with tentative listing date fixed as Wednesday, November 27, 2024.. Login to your account now.
How to apply for the NTPC Green Energy Limited IPO through StoxBox?
To apply for the NTPC Green Energy Limited IPO through StoxBox one can apply from the website and also from the app. Click here
When will the NTPC Green Energy Limited IPO open?
NTPC Green Energy Limited IPO is opening on 19th November 2024. Apply Now
What is the lot size of the NTPC Green Energy Limited IPO?
The Lot Size of NTPC Green Energy Limited IPO is 138 equity shares. Login to your account now
When is the NTPC Green Energy Limited IPO allotment date?
The allotment Date for NTPC Green Energy Limited IPO is 25th November 2024. Login to your account now.
When is the NTPC Green Energy Limited IPO listing date?
The listing Date for NTPC Green Energy Limited IPO is 27th November 2024. Login to your account now
What is the minimum investment required for the NTPC Green Energy Limited IPO?
In the Retail segment the minimum investment required is Rs. 14,904. Login to your account now
What is the maximum investment allowed for the Zinka Logistics Solutions Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 191,646. Login to your account now
What are the risks associated with investing in the NTPC Green Energy Limited IPO?
- The company has a concentrated pool of utilities and power purchasers for electricity generated by its plants and projects. More than 87% of its operational revenue in FY24 was derived from its top five off-takes, with its single largest off-taker contributing 50% to the revenue. The loss of any of these key customers or a deterioration in their financial condition could adversely impact the company’s business, operational results, and financial health.
- The company’s business and profitability heavily rely on the availability and cost of solar modules, solar cells, wind turbine generators, and other materials, components, and equipment for its solar, wind, and other projects. It depends on third-party suppliers to meet these requirements, with its top 10 suppliers accounting for 77.71% of its supplies in FY24. Any disruption in the timely and adequate supply or price volatility of these materials, components, and equipment could negatively affect the company’s business, operational results, and financial condition.
- The company’s operating renewable energy projects are concentrated in Rajasthan, with 61.74% of its projects located in the state as of FY24. Any significant social, political, economic, or seasonal disruption, natural calamities, or civil unrest in Rajasthan could adversely impact the company’s business, results of operations, and financial condition.
When will the NTPC Green Energy Limited IPO shares be credited to my Demat account?
The NTPC Green Energy Limited IPO be credited to the account on allotment date which is 26th November 2024. Login to your account now
Where can I find the NTPC Green Energy Limited IPO prospectus?
The prospectus of NTPC Green Energy Limited IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to NTPC Green Energy Limited IPO?
| IPO Open Date | Tuesday, November 19, 2024 |
| IPO Close Date | Friday, November 22, 2024 |
| Basis of Allotment | Monday, November 25, 2024 |
| Initiation of Refunds | Tuesday, November 26, 2024 |
| Credit of Shares to Demat | Tuesday, November 26, 2024 |
| Listing Date | Wednesday, November 27, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on November 22, 2024 |
