The NTPC Green Energy IPO is a significant financial event, drawing attention from investors nationwide. With a total issue size of ₹10,000 crore, this IPO is a 100% fresh issue involving 92.59 crore shares. Below is an in-depth look into the key details, timelines, and investor opportunities surrounding this much-anticipated IPO.
Key Details of NTPC Green Energy IPO
IPO Timeline
- Opening Date: November 19, 2024
- Closing Date: November 22, 2024
- Allotment Finalization Date: November 25, 2024
- Listing Date: November 27, 2024
Price Band and Lot Size
The price band for the IPO is set between ₹102 to ₹108 per share. The minimum application size is 138 shares, requiring an investment of ₹14,904 for retail investors.
- Retail Minimum Investment: ₹14,904 (1 lot, 138 shares)
- sNII Minimum Investment: ₹208,656 (14 lots, 1,932 shares)
- bNII Minimum Investment: ₹1,013,472 (68 lots, 9,384 shares)
Employee Reservation and Discount
NTPC Green Energy has reserved 19,417,476 shares for its employees at a ₹5 discount per share.
IPO Management
The IPO is managed by prominent book-running lead managers:
- IDBI Capital Market Services Limited
- HDFC Bank Limited
- IIFL Securities Ltd
- Nuvama Wealth Management Limited
KFin Technologies Limited serves as the registrar for the issue.
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Reservation Details
The total 92.68 crore shares are divided into specific categories, ensuring opportunities for various investor groups:
| Investor Category | Shares Offered | Percentage |
|---|---|---|
| Anchor Investors | 36,66,66,666 shares | 39.56% |
| Qualified Institutional Buyers (QIB) | 24,44,44,445 shares | 26.37% |
| Non-Institutional Investors (NII) | 12,22,22,222 shares | 13.19% |
| Retail Individual Investors (RII) | 8,14,81,481 shares | 8.79% |
| Employees | 1,94,17,476 shares | 2.1% |
| Other Categories | 9,25,92,593 shares | 9.99% |
Anchor Investor Details
On November 18, 2024, NTPC Green Energy raised ₹3,960 crore from anchor investors. The total shares offered under the anchor investor portion were 366,666,666. These shares are under a lock-in period until December 25, 2024, for 50% of the shares, while the remaining 50% is lock until February 23, 2025.
About NTPC Green Energy Limited
Incorporat in April 2022, NTPC Green Energy Limited is a wholly owned subsidiary of NTPC Limited. It focuses on renewable energy projects, including solar, wind, and hydropower.
Operational Highlights (as of June 30, 2024):
- Operational Capacity: 3,071 MW (solar) and 100 MW (wind) across six states.
- Project Portfolio: 14,696 MW, comprising 2,925 MW of operational projects and 11,771 MW of projects under construction or awarded.
- Workforce: The company employs 234 individuals and contracts an additional 45 laborers.
Competitive Strengths:
- Supported by NTPC Limited, known for its expertise in large-scale power projects.
- Diversified portfolio of renewable energy projects.
- Proven track record in project execution and financial resilience.
Financial Performance
NTPC Green Energy Limited has demonstrated remarkable financial growth, with revenues increasing by 1,094.19% and profit after tax (PAT) growing by 101.32% between FY2023 and FY2024.
Financial Highlights (₹ Crore):
| Period | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|
| Total Assets | 32,408.30 | 27,206.42 | 18,431.40 |
| Revenue | 1,132.74 | 2,037.66 | 170.63 |
| Profit After Tax (PAT) | 175.30 | 344.72 | 171.23 |
NTPC Green Energy IPO Objectives
The company aims to utilize the net proceeds from the IPO for the following purposes:
- Investment in NTPC Renewable Energy Limited (NREL) for debt repayment/prepayment.
- General corporate purposes.
Subscription Status
On Day 1 (November 19, 2024), the IPO was subscribed 0.36 times overall. The subscription details are as follows:
| Category | Subscription (times) |
|---|---|
| QIB | 0.00 |
| NII | 0.17 |
| Retail | 1.47 |
| Employee | 0.19 |
| Others | 0.63 |
Investment Considerations
NTPC Green Energy’s IPO presents a unique opportunity for long-term investors to participate in India’s renewable energy growth story. While the IPO is priced aggressively based on FY2025 annualized earnings, the company’s strong backing, operational excellence, and significant portfolio make it a viable option for cash-surplus investors with a long-term perspective.
Investors are advis to consult the Red Herring Prospectus (RHP) and stay updated on the official websites for the latest developments.
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Conclusion
The NTPC Green Energy IPO is a landmark offering in the renewable energy sector, reflecting the growing emphasis on sustainable power solutions. With its strong financials, expansive portfolio, and backing from NTPC Limited, this IPO could be a strategic addition to an investor’s portfolio. However, due diligence and a clear understanding of one’s financial goals are essential before making investment decisions.