NTPC Green Energy: The green energy unit of the state-run NTPC is launching its initial public offering for Rs. 10,000 crores at a price band ranging from Rs. 102 to Rs. 108 per equity share. Investors looking forward to this IPO can place bids for the issue, consisting of 138 shares for the initial offering. The IPO is set for November 19 and will conclude on November 22 after a three-day bid.
NTPC Green Energy is a subsidy of NTPC Ltd, operating under the Ministry of Power. The company is planning to issue fresh equity shares without the Offer of Sale (OFS) component. At Rs. 10,000 crores, NTPC Green Energy’s public offering will be the largest this year, following the likes of Hyundai Motors (Rs. 27,870 crores) and Swiggy (Rs. 11,300 crores).
A CRISIL report for Fiscal 24 has indicated in its DRHP that NTPC Energy Ltd is the largest public sector company in the renewable energy sector, as far as operational capacity and power generation are concerned, except for hydroelectricity power generation.
NTPC Green has collaborated with 15 off-takers for 37 solar and nine wind projects. The renewable energy company is also developing 31 projects in seven states, with a total capacity of 11,771 MW. NTPC Green has already received the contracts for these projects, which are already underway, in addition to the 14 solar projects and two wind projects worth 2,925 MWs.
Financials
Revenue growth for NTPC Green has been strong at 46.82%, a jump from Rs. 910.42 crores in Fiscal 2022 to Rs. 1,962.60 crores in Fiscal 2024. Profit After Tax (PAT) has also seen staggering improvements, witnessing an annual growth rate of 90.75% in CAGR, going from Rs. 94.74 crores in FY 22 to Rs. 344.72 crores in FY 24.
As of June 30, 2024, the company’s operational revenue was Rs. 578.44 crores, and PAT was Rs. 138.61 crores, on a restated basis.
About the IPO
The shares will have floor and cap prices of 10.2 and 10.8 times the face value, respectively. 75% of these shares will be reserved for Qualified Institutional Buyers (QIB), 15% for non-institutional investors (NII), and 10% for retail investors. Employees will also get equity shares worth an aggregate of Rs. 20 crores, with a discount of Rs. 5 per equity share.
NTPC hopes to raise Rs. 7,500 crores with this IPO, which will be used to prepay or pay off existing debts with NTPC Renewable Energy Limited (NREL) and for corporate needs.
Conclusion
The IPO is a crucial step NTPC will take to secure 60 GW (gigawatts) of renewable energy capacity by 2032. NTPC Green Energy still has 24 GW to secure and is working aggressively to expand its solar energy and green hydrogen components.
NTPC Green Energy
IPO
