NTPC Green Energy Limited, a fully owned subsidiary of NTPC Limited, has received final approval from the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO) worth Rs 10,000 crore. This NTPC Green Energy IPO is anticipated to enter the primary market shortly, featuring a face value of Rs 10 per equity share, consisting entirely of fresh equity shares.
The company submitted its IPO application to Sebi on September 18, 2024, and while the NTPC Green Energy IPO date has yet to be announced, it is expected to take place this month. The IPO will also include a reservation for eligible employees, who will receive a discount for participating in this portion.
Key Information for Investors
- Shareholders’ Quota: The IPO will offer a quota for existing shareholders of NTPC. Investors holding NTPC shares as of the date of the Red Herring Prospectus (RHP), which will be filed later, can participate in this category. To boost the chances of allotment, potential investors may consider buying NTPC shares now, making it a strategic move ahead of the NTPC green IPO date.
- Analysts’ Outlook: ICICI Securities has rated NTPC shares as a “buy,” highlighting the company’s operational capacity of 3.2 GW and a pipeline of 12 GW in contracted renewable energy projects. The analysts note that NTPC aims for 60 GW of renewable energy capacity by FY32 and expect a revenue estimate of Rs 117 billion for its portfolio.
- IPO Proceeds: Of the Rs 10,000 crore, Rs 7,500 crore will be allocated to invest in NTPC Renewable Energy Limited (NREL) and repay outstanding borrowings. This funding will support the company’s growth as it diversifies into renewable energy.
- Business Growth: NTPC Green Energy has seen significant growth, with revenue rising from ₹910.42 crore in FY22 to ₹1,962.60 crore in FY24. Its profit after tax also grew impressively during the same period, showcasing the company’s expanding operations.
- Strategic Development: NTPC Green Energy focuses on developing utility-scale renewable energy projects, including solar and wind power, across multiple states. As of August 31, 2024, the company has an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects.
| Description | Details | Explanation |
|---|---|---|
| IPO Size | ₹10,000 crore | Total funds expected to be raised through the IPO. |
| Face Value per Share | ₹10 | The nominal value of each equity share. |
| IPO Application Submitted On | September 18, 2024 | Date when the IPO application was filed with Sebi. |
| Expected IPO Date | October 2024 (tentative) | Anticipated launch date for the IPO. |
| Allocation for Employees | Yes, with discounts for eligible participants | Special provisions for employees to encourage participation. |
| Shareholders’ Quota | For existing shareholders of NTPC | Existing NTPC shareholders can apply for shares in this quota. |
| Total Operational Capacity | 14,696 MW (from all NTPC projects) | Total capacity from all NTPC power projects, including renewable. |
| Current Renewable Capacity | 3,071 MW from solar, 100 MW from wind | Breakdown of current operational capacity from renewable sources. |
| Target Renewable Capacity by FY32 | 60 GW | NTPC’s goal for renewable energy capacity by the fiscal year 2032. |
| Current Renewable Capacity as of FY24 | 14 GW | Total renewable capacity operational as of fiscal year 2024. |
| Pipeline of Contracted Projects | 12 GW | Future projects that are contracted but not yet operational. |
| Expected Revenue for FY32 | ₹117 billion | Projected revenue for NTPC’s portfolio in FY32. |
| Revenue FY22 | ₹910.42 crore | Revenue generated in the fiscal year 2022. |
| Revenue FY24 | ₹1,962.60 crore | Revenue generated in the fiscal year 2024, showing growth. |
| Profit After Tax Growth | Significant growth from FY22 to FY24 | Indicates the profitability trend of NTPC Green Energy. |
NTPC Green Energy IPO Price and Participation
The NTPC Green Energy IPO price will be determined closer to the launch date, and investors are advised to stay informed through official channels. The upcoming IPO of NTPC Green Energy Limited represents a significant opportunity for investors, particularly as the company shifts its focus towards renewable energy amid growing demand. With favourable analyst ratings and a clear strategy for expansion, this IPO is poised to attract interest from investors looking to participate in India’s green energy future.
