NTPC Green Energy Limited (NGEL), a wholly-owned subsidiary of NTPC Limited, has initiated its initial public offering (IPO) to raise ₹10,000 crore, aiming to bolster its renewable energy portfolio. The IPO opened for subscription on November 19, 2024, and is scheduled to close on November 22, 2024. The price band is set between ₹102 and ₹108 per share, with a minimum lot size of 138 shares, translating to an initial investment of ₹14,904 for retail investors.
Company Overview
Established in April 2022, NGEL focuses on renewable energy generation, primarily through solar and wind power projects. As of September 30, 2024, the company operates 3,220 MW of solar projects and 100 MW of wind projects across six Indian states. NGEL's total portfolio stands at 16,896 MW, encompassing operational, contracted, and pipeline projects.
Financial Performance
In the fiscal year 2024, NGEL reported revenues of ₹2,037.66 crore, a substantial increase from ₹170.63 crore in 2023. The company's profit also rose to ₹1,549.46 crore in 2024, up from ₹118.09 crore in the previous year.
Use of Proceeds
The funds raised from the IPO will be utilized to invest in NGEL's wholly-owned subsidiary, NTPC Renewable Energy Limited (NREL), for the repayment or prepayment of certain outstanding borrowings and for general corporate purposes.
Subscription Status
On the first day of the IPO, November 19, 2024, the issue was subscribed 33%, with the retail portion fully subscribed at 1.33 times. The non-institutional investors' portion was subscribed 15%, while the qualified institutional buyers' portion had not received any subscriptions at that time.
Analyst Recommendations
Analysts have given a "Subscribe" rating for the long term, citing the company's strong business model, robust earnings growth, and improved financials.
Grey Market Premium (GMP)
As of November 20, 2024, the shares of NGEL are trading at a modest grey market premium of ₹1, indicating a 0.9% premium over the issue price.
Key Dates
- Basis of Allotment: November 25, 2024.
- Initiation of Refunds: November 26, 2024.
- Credit of Shares to Demat Accounts: November 26, 2024.
- Listing Date: November 27, 2024.
Investors interested in participating in the IPO should ensure their applications are submitted before the closing date on November 22, 2024.
