New Delhi:

The Initial Public Offering (IPO) of NTPC Green Energy Ltd (NGEL), a subsidiary of the Maharatna public sector enterprise NTPC Ltd, opened for subscription from today, Tuesday.

The IPO is offered, at a price band of Rs 102-108 per share, and subscription is open until Friday. The company plans to raise a total of Rs 10,000 crore and is scheduled to list on the stock exchanges on November 27.

Shareholders of NTPC can apply for the IPO under a special shareholder quota. Additionally, NTPC employees have a separate quota for applying.

The lot size for the IPO is 138 shares. The shares will be transferred to demat accounts on November 26.

NGEL aims to scale its operational renewable capacity to 19 GW by FY27, reflecting its commitment to India’s clean energy transition.

This IPO is part of NTPC Ltd’s broader strategy to achieve 60 GW of renewable energy capacity by 2032. NTPC currently contributes 24 per cent of India’s total power generation and views NGEL as a critical vehicle to drive its renewable energy ambitions.

As of September 2024, NGEL operates 3,220 MW of solar and 100 MW of wind power projects. The company has a robust pipeline with 13,576 MW of contracted and awarded projects and an additional 9,175 MW in development.

NGEL’s renewable projects span key states such as Rajasthan, Gujarat, Tamil Nadu, and Uttar Pradesh. This geographical diversification mitigates risks associated with location-specific generation variability, ensuring stable and reliable energy output.

With NTPC’s extensive experience in project development and execution, NGEL is well-positioned to deliver on its ambitious targets. The company’s ownership of 8,900 acres of freehold land and 45,700 acres of leasehold land further bolsters its foundation for future expansion.

Beyond conventional solar and wind energy, NGEL is exploring advanced solutions like green hydrogen, green chemicals, and battery energy storage systems. These initiatives align with India’s sustainability goals and position NGEL to tap into emerging opportunities in the global clean energy market.

NGEL benefits from NTPC’s strong financial backing, ensuring access to low-cost capital. This advantage is crucial for maintaining profitability in the capital-intensive renewable energy sector. The company’s operational efficiencies and strategic focus further enhance its market competitiveness.

At the upper price band of Rs 108 per share, NGEL is valued at an FY24 EV/EBITDA multiple of 53.4x. Analysts have expressed confidence in the company’s long-term growth potential and recommended for subscription for investors seeking sustainable and long term profitable opportunities.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Representational image only. File
| Photo Credit: The Hindu

Renewable energy solutions provider Suzlon on Monday (September 9, 2024) said it has bagged India’s largest wind energy order of 1,166 MW from NTPC Green Energy Limited.

“Suzlon will install a total of 370 wind turbine generators (WTGs) of S144 equipped with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 3.15 MW each at two projects of NTPC Renewable Energy Limited (a wholly-owned subsidiary of NGEL) and one project of Indian Oil NTPC Green Energy Private Limited (a group company of NGEL) in Gujarat,” a company statement said.

This order win takes Suzlon’s cumulative order book to around 5GW as of September 3, 2024. “We are delighted to partner with NTPC Green Energy Limited, the renewables arm of India largest utility NTPC Limited, in our capacity as the nation’s premier Wind Energy Original Equipment Manufacturer (OEM),” said Girish Tanti, vice-chairman, Suzlon Group.

“This project will emerge as the largest wind energy initiative by a PSU in Gujarat, cementing the State’s leadership in renewable energy,” he said.

“Upon completion, it will set a new benchmark for future projects, substantially, contributing to India’s energy self-sufficiency, economic prosperity and NGEL’s ambitious target of adding 60 GW renewable energy capacity by 2032,” it said.

As part of the agreement, Suzlon will supply the wind turbines (equipment supply) and execute the project, including erection and commissioning, in Gujarat as well as undertake operations and maintenance services post-commissioning.