NTPC Green Energy IPO: Should You Apply or Avoid?
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.
About NTPC Green Energy Limited
Incorporated in April 2022, NTPC Green Energy Limited is a wholly-owned subsidiary of NTPC Limited. NTPC Green is a renewable energy company that focuses on undertaking projects through organic and inorganic routes. The largest renewable energy public sector enterprise, NTPC (National Thermal Power Corporation Limited), was incorporated on November 7, 1975. The company’s renewable energy portfolio includes solar and wind power, making it easier to generate clean energy. Additionally, the company aims to develop utility-scale renewable energy projects and projects for public sector undertakings (“PSUs”) and Indian corporations. As of June 30, 2024, the company has an energy capacity of 14,696 MW, consisting of 2,925 MW from operating projects and 11,771 MW from contracted and awarded projects. Compared to its peers, NTPC has achieved higher EBITDA margins and PTA margins in the last 2 years. The company is constructing 31 renewable energy projects in 7 states, totaling 11,771 MW. As of June 30, 2024, the workforce comprised 234 employees, and the company utilised the services of 45 contract labourers.
IPO Subscription Period
- Open Date: November 19, 2024
- Close Date: November 22, 2024
- Allotment Date: November 25, 2024
- Listing Date: November 27, 2024
- Stock Exchanges: BSE and NSE
Pricing Details
- Price Band: ₹102 – ₹108 per Share
- Face Value: ₹10 per Share
- Minimum Lot Size: 138 shares
- Investment Requirement:
- Retail Investors: Minimum ₹14,904 (138 shares)
- Small Non-Institutional Investors (sNII): 14 lots (1932 shares) – ₹208,656
- Big Non-Institutional Investors (bNII): 68 lots (9384 shares) – ₹1,013,472
Reservation Structure
- Qualified Institutional Buyers (QIB): 26.37% (24,44,44,445 shares)
- Non-Institutional Investors (NII): 13.19% (12,22,22,222 shares)
- Big NII (bNII): 8.79%
- Small NII (sNII): 4.4%
- Retail Investors: 8.79% (8,14,81,481 shares)
- Anchor Investors: 39.56% (36,66,66,666 shares) raising ₹3960 crores
Key Dates and Timeline
- IPO Open Date: Thursday, November 19, 2024
- IPO Close Date: Monday, November 22, 2024
- Basis of Allotment: Tuesday, November 25, 2024
- Initiation of Refunds: Wednesday, November 26, 2024
- Credit of Shares to Demat: Wednesday, November 26, 2024
- Listing Date: Thursday, November 27, 2024
- Cut-off time for UPI mandate confirmation: 5 PM on November 22, 2024
Book Running Lead Managers
Niva Bupa Health Insurance Limited has appointed prominent financial institutions as book-running lead managers for the IPO:
- IDBI Capital Market Services Limited
- IIFL Securities Limited
- HDFC Bank Limited
- Nuvama Wealth Management Limited
Kfin Technologies Limited has been designated as the registrar for the IPO.
Promoter Information
- Promoter: The Promoters of the Company are the President of India, acting through the Ministry of Power, Government of India and NTPC Limited.
- Shareholding:
- Pre-Issue: 100%
- Post-Issue: 89.01%
Financial Highlights
- Revenue Growth: Increased by 11 folds from ₹170 crores (FY 2023) to ₹2037.66 crores (FY 2024)
- Profit After Tax (PAT): Rose by 100%, reaching ₹344.72 crores in FY 2024
- Net Worth: ₹6232 crores
- Total Borrowing: ₹12796 crores
Key Performance Indicators (KPIs):
- ROE: 7.39%
- RoNW: 2.14%
- P/BV: 9.89
- EPS (Pre-IPO): ₹0.46
- EPS (Post-IPO): ₹0.42
- P/E Ratio (Pre-IPO): 234.97x
- P/E Ratio (Post-IPO): 259.56x
IPO Objectives
The company proposes to utilise the Net Proceeds towards funding the following objects:
- Investment in the wholly owned Subsidiary, NTPC Renewable Energy Limited (NREL), for repayment/ prepayment, in full or in part of certain outstanding borrowings availed by NREL
- General corporate purpose
Subscription Status (As of November 19, 2024, 7:02:07 PM)
- Retail: 1.47x
- QIB: 0.00x
- NII: 0.17x
- Overall Subscription: 0.36x