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NTPC Green Energy's ₹10,000 crore IPO to list today; what GMP signals ahead of stock market debut
Analysts mostly had recommended investors to subscribe to the issue, considering the company's prudent business model and strong earnings growth with improved financials and return ratios.
Shares of NTPC Green Energy Ltd. are set to make its Dalal Street debut on Wednesday, November 27. The company is expected to have a soft landing at Dalal Street, if one goes by the muted signals from Dalal Street.
Ahead of its debut, shares of NTPC Green Energy were commanding a grey market premium (GMP) of ₹1 today. The muted trends from the unofficial market suggested towards a dull listing for the investors later today.
The grey market is an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the GMP to get an idea of the listing price.
Follow NTPC Green Energy IPO listing live updates here
The IPO, which was open for subscription from November 19 to November 22, had a fixed price band of ₹102-108 per share. The company raised ₹10,000 crore through the issue.
Analysts mostly had recommended investors to subscribe to the issue, considering the company's prudent business model and strong earnings growth with improved financials and return ratios.
The proceeds from the fresh issue to the extent of ₹7,500 crore will be used for investment in its wholly owned subsidiary, NTPC Renewable Energy Ltd. (NREL) for repayment, in full or in part of certain outstanding borrowings availed by NREL; and general corporate purposes.
This IPO ranks as the third largest of 2024, following Hyundai Motor India's ₹27,870 crore issue and Swiggy's ₹11,300 crore offering.
NTPC management is aiming for significant value unlocking through the listing of NTPC Green Energy, sources told CNBC-TV18 earlier.
In an interview with CNBC-TV18, Mohit Bhargava, CEO of NTPC Green Energy, had said that the primary reason for considering an IPO is the significant need for equity in the business.
"We will have to raise equity either through internal accruals or from the markets. So we feel that we will have to go to the market at some point of time."
NTPC Green Energy, a wholly owned subsidiary of NTPC is the largest renewable energy public sector enterprise (excluding hydro energy) in term of operating capacity as of September 24 and power generation as of March 2024. The company’s renewable energy portfolio includes both solar and wind power assets with presence across multiple locations in more than 6 states which helps in mitigating risk of location specific generation variability.
As of Sep’24, NTPC Green’s operational capacity stood at 3,220 MW of solar projects and 100 MW of wind projects across 6 states with average Power Purchasing Agreement (PPA) period of 25 years.
Further, it has 13,576 MW of contracted & awarded projects and capacity under pipeline of 9,175 MW as of Sep’24.
NTPC aims to achieve 60 gigawatts (GW) of renewable energy (RE) capacity by FY32. It currently has 3.5 GW of installed capacity and more than 28 GW under development.
IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management will act as the book-running lead managers for the issue.
Ahead of its debut, shares of NTPC Green Energy were commanding a grey market premium (GMP) of ₹1 today. The muted trends from the unofficial market suggested towards a dull listing for the investors later today.
The grey market is an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the GMP to get an idea of the listing price.
Follow NTPC Green Energy IPO listing live updates here
The IPO, which was open for subscription from November 19 to November 22, had a fixed price band of ₹102-108 per share. The company raised ₹10,000 crore through the issue.
Analysts mostly had recommended investors to subscribe to the issue, considering the company's prudent business model and strong earnings growth with improved financials and return ratios.
The proceeds from the fresh issue to the extent of ₹7,500 crore will be used for investment in its wholly owned subsidiary, NTPC Renewable Energy Ltd. (NREL) for repayment, in full or in part of certain outstanding borrowings availed by NREL; and general corporate purposes.
This IPO ranks as the third largest of 2024, following Hyundai Motor India's ₹27,870 crore issue and Swiggy's ₹11,300 crore offering.
NTPC management is aiming for significant value unlocking through the listing of NTPC Green Energy, sources told CNBC-TV18 earlier.
In an interview with CNBC-TV18, Mohit Bhargava, CEO of NTPC Green Energy, had said that the primary reason for considering an IPO is the significant need for equity in the business.
"We will have to raise equity either through internal accruals or from the markets. So we feel that we will have to go to the market at some point of time."
Business overview
NTPC Green Energy, a wholly owned subsidiary of NTPC is the largest renewable energy public sector enterprise (excluding hydro energy) in term of operating capacity as of September 24 and power generation as of March 2024. The company’s renewable energy portfolio includes both solar and wind power assets with presence across multiple locations in more than 6 states which helps in mitigating risk of location specific generation variability.
As of Sep’24, NTPC Green’s operational capacity stood at 3,220 MW of solar projects and 100 MW of wind projects across 6 states with average Power Purchasing Agreement (PPA) period of 25 years.
Further, it has 13,576 MW of contracted & awarded projects and capacity under pipeline of 9,175 MW as of Sep’24.
NTPC aims to achieve 60 gigawatts (GW) of renewable energy (RE) capacity by FY32. It currently has 3.5 GW of installed capacity and more than 28 GW under development.
IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management will act as the book-running lead managers for the issue.
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First Published: Nov 27, 2024 8:43 AM IST
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