Upcoming NTPC Green Energy IPO: Key Dates, Size, Price, GMP, Review, Allotment, Pricing, and Market Sentimen

The much-anticipated NTPC Green Energy IPO is set to make waves in the market as it aims to raise ₹10,000 crores. Backed by NTPC Ltd, this Initial Public Offering has received approval from the Securities and Exchange Board of India (SEBI) and is expected to list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This article provides a comprehensive overview of the IPO’s key details, subscription status, grey market premium (GMP), expert opinions, and whether investors should consider subscribing.

IPO Overview

• IPO Size: ₹10,000 crores
• IPO Type: Fresh issue of shares
• Expected Launch Date: Late November 2024
• Price Band: Estimated between ₹100 to ₹120 per share, subject to market conditions
• Listing Exchanges: BSE and NSE

The IPO is significant as it positions NTPC Green Energy to compete against established players like Adani Green Energy in the renewable energy sector.

Investment Allocation

The IPO will be allocated among qualified institutional buyers (QIBs), non-institutional investors (NIIs), retail individual investors (RIIs), and employees. This diverse allocation strategy aims to attract a wide range of investors.

Subscription Status

As of now, specific subscription figures are not available since the IPO has not yet launched. However, market analysts expect strong interest from retail investors due to the growing focus on renewable energy and government initiatives promoting green energy projects.

Grey Market Premium (GMP)

The current grey market premium for NTPC Green Energy shares stands at approximately ₹34 per share. This premium indicates positive sentiment among investors regarding the upcoming IPO. The GMP reflects the market’s expectations for the stock’s performance upon listing.

GMP Insights

• Last Recorded GMP: ₹34
• Subject to SAUDA: ₹6,500

A positive GMP suggests that investors are willing to pay more than the issue price, which could lead to a favorable listing on the exchanges.

Company Profile

NTPC Green Energy Ltd (NGEL) is a subsidiary of NTPC Ltd, focusing on renewable energy generation. Currently, NGEL operates 3.2 GW of renewable energy capacity, including 3.1 GW from solar and 100 MW from wind sources. The company has ambitious plans to ramp up its capacity significantly to 60 GW by 2032, targeting a compound annual growth rate (CAGR) of 44%.

Areas of Focus

1. Solar Energy: NGEL has commissioned several large-scale solar power plants across India.
2. Wind Energy: The company is investing in wind power projects leveraging India’s vast wind corridors.
3. Hybrid Projects: NGEL is focused on hybrid renewable energy projects combining solar and wind energy.
4. Green Hydrogen Initiatives: Exploring green hydrogen as a means to store and transport renewable energy.

Financial Performance

Recent financial insights indicate robust growth for NTPC Green Energy:

• Revenue Growth: Revenue increased from ₹170.60 crore in FY 2023 to ₹2,028.69 crore in FY 2024.
• Profit Growth: Profit more than doubled from ₹174.44 crore in FY 2023 to ₹370.47 crore in FY 2024.
• Asset Growth: Total assets rose from ₹16,878.85 crore in FY 2023 to ₹18,321.83 crore in FY 2024.

These financial metrics highlight the company’s strong operational performance and growth trajectory within the renewable energy sector.

Should You Invest?

Prospective Investors Should Consider:

• Strong Market Positioning: As a Maharatna PSU, NTPC’s backing provides stability and credibility.
• Growth Potential: With ambitious expansion plans in renewable energy, NGEL is well-positioned for future growth.

Risks to Consider:

• Market Competition: The renewable energy sector is becoming increasingly competitive with major players like Adani Green.
• Regulatory Challenges: Compliance with environmental regulations and potential changes in government policies could impact operations.

Expert Opinions

Market analysts have expressed optimism regarding the NTPC Green Energy IPO:

• Analysts at ICICI Direct highlight that NGEL’s ambitious growth plans and strong backing from NTPC make it an attractive investment opportunity.
• Other experts note that the growing emphasis on sustainable energy solutions aligns well with government policies aimed at reducing carbon emissions.

Conclusion

The NTPC Green Energy IPO presents a significant opportunity for investors looking to engage with the growing renewable energy sector in India. With a robust financial performance and ambitious expansion plans, potential investors should weigh the risks against the promising growth opportunities before making their investment decisions.

Disclaimer: The views expressed in this article are solely those of individual analysts and do not represent the views of any financial institution or its management. Investors are advised to conduct their own research and consult with certified financial advisors before making any investment decisions regarding this IPO.