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.)

NTPC Green Energy is a ‘Maharatna’ Central Public Sector Enterprise with renewable energy portfolio, including solar and wind power assets. File
| Photo Credit: Reuters

Shares of NTPC jumped by more than 4% to hit an all-time high on Thursday (September 19, 2024) after NTPC Green Energy, the renewable energy arm of the firm, filed preliminary papers with capital markets regulator Securities and Exchange Board of India (SEBI) to raise ₹10,000 crore through an Initial Public Offering (IPO).

The stock climbed 4.34% to ₹431.85 — its record high — on the BSE. At the NSE, it surged 4.27% to ₹431.85 — the all-time high.

The initial share-sale is entirely a fresh issuance of equity shares with no Offer For Sale (OFS) component, according to the Draft Red Herring Prospectus (DRHP).

The renewable energy firm said proceeds of the issue to the tune of ₹7,500 crore will be used to repay or prepay part or all of its subsidiary NTPC Renewable Energy Limited’s (NREL) outstanding loans, while a portion will be utilised for general corporate purposes.

NTPC Green Energy is a ‘Maharatna’ Central Public Sector Enterprise with renewable energy portfolio, including solar and wind power assets.

IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the book-running lead managers to the issue.