With the NTPC Green Energy IPO, the company’s stock will open for public subscription from November 19 to November 22. As you may already know, shareholders of NTPC Ltd will have a 10 percent quota. That means Rs. 10,000 crores and Rs. 1,000 crores will be reserved for company shareholders as per the RHP. It also means investors who hold even one share will be eligible to subscribe, increasing the chances of the allotment.
NTPC Green Energy, a subsidy of the state-run NTPC Ltd, is deemed the largest renewable energy company operating in the public sector. ‘Largest’ here refers to the operational capacity, which is 3.2GW. The company retained the ‘largest’ status in Fiscal 24, as per a report by CRISIL in November 2024.
What is the Shareholder Quota Cut-Off Date?
Eligible investors who hold NTPC shares will be allocated equity shares at a face value of Rs. 10 per share. This allocation will be proportionate, at most 10% of the issue size. Shareholders can file their allotments under the 10% shareholder quota through the RHP on November 13.
What’s in it for Investors?
NTPC Ltd closed at Rs. 372.8 per share, a 2.19 percent drop from the previous close. Two companies in the green energy sector, Premier Energies and Waree Energie went for bumper listings, on which investors capitalized, and now they are hoping to do the same with NTPC Green Energy, especially considering that the company in question is a subsidiary of a government-owned power firm.
The IPO’s grey market premium also gained moderately from the listing, although it has been falling for seven days straight now, reducing to Rs. 2 on November 15 from Rs. 25 on November 9. GMP also shows that investors are ready to shell out more compared to the share’s issue price. With the IPO, NTPC Green Energy shares got a price band ranging from Rs. 102 to Rs. 108 apiece.
Analyst Recommendations
NTPC Green Energy has a capacity of 3.2GW, and there’s more to come, with 12GW of contracts for under-construction renewable energy projects and 11GW more to be acquired soon. However, utility-scale projects are not the only thing that the company is looking forward to, and NGEL has also collaborated with other corporates and PSUs to work on their requirements.
NTPC’s target is to achieve 60 GW of renewable energy by FY32. The IPO comes when thermal energy companies increasingly seek to shift toward renewable energy and increase revenues.
Conclusion
IDBI Capital Markets and Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management were the IPO forerunners, and KFin Technologies acted as the registrar. NTPC Green Energy’s IPO is worth considering, given its strong financials, solid business foundation, and plans to expand its strategic position by acquiring substantial projects and building a robust portfolio. NTPC continues to be a leader in the green energy segment, even as a subsidy of a state-owned corporation.
NTPC Green Energy
IPO
