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NTPC Green Energy IPO Live Updates: Rs 10,000 cr issue gets 33% bids on Day 1; check GMP, price band & subscription status
19 Nov 2024 | 07:44:26 PM IST
NTPC Green Energy IPO
Synopsis
NTPC Green Energy IPO: The much-anticipated IPO of NTPC Green Energy opened for subscription today. It has been subscribed 33% at the end of the first day of bidding. The GMP of NTPC Green is currently Rs 1 in the unlisted markets, which indicates a premium of 0.9% over the issue price.
NTPC Green IPO Live Today: The highly anticipated IPO of NTPC Green Energy opened for subscription today. The company shares are trading with a modest grey market premium (GMP) of Rs 1 in the unlisted market.
With the IPO priced at ₹108 per share at the upper end of the band, the current GMP reflects a marginal 0.9% premium over the issue price. The ₹10,000-crore offering is entirely a fresh equity issuance and will close on November 22.
Show moreWith the IPO priced at ₹108 per share at the upper end of the band, the current GMP reflects a marginal 0.9% premium over the issue price. The ₹10,000-crore offering is entirely a fresh equity issuance and will close on November 22.
- The initial public offering (IPO) of NTPC Green, the renewable energy subsidiary of NTPC, opened for subscription earlier today and has been subscribed to 6% on the first day of bidding.
- As of 10:40 AM, retail investors led the subscription, applying for 29% of their allocated portion by bidding for 2,48,66,634 shares out of the 8,62,74,509 shares reserved for them. Non-institutional investors (NIIs) followed, subscribing to 3% of their allotment so far.
1 New Update
NTPC Green Energy IPO Live Updates: Solar is going to be the clear winner, says CMD
Gurdeep Singh, CMD, NTPC & NTPC Green Energy, says: We believe that solar is going to be the clear winner and our plan is to go for about 90% in the solar and 10% in the wind because the solar has a clear visibility and with the storage this grid kind of integration will be far better because solar is predictive and with the storage we can also meet the requirement of the peak hours which is off solar hours after the sunset whereas wind is available in different parts of the country only for a few months. So, solar has a clear-cut advantage over the wind going forward.
NTPC Green Energy IPO Live Updates: We have a broad target of 60GW, says Director of Finance, NTPC Green
Jaikumar Srinivasan, Director-Finance, NTPC & NTPC Green Energy: We have a broad target of 60 gigawatt which we have set out to be completed by FY32 but on a more immediate basis, we have operational capacity of 3.32 gigawatt and 13 gigawatt under construction. It is either awarded or contracted and under construction and beyond that there is another 9 to 9.15 gigawatt in the pipeline.
NTPC Green Energy IPO Live Updates: On solid ground now, says CMD
Gurdeep Singh, CMD, NTPC & NTPC Green Energy, says: We had started this journey quite some time back and we are on very solid ground as of now. We have the operating capacity, the plan in place and the construction of the projects that are going on and we have set this pricing based on various inputs and we believe this is a very fair price
NTPC Green Energy IPO subscribed 33% on day 1. Check GMP, other details
The initial public offer (IPO) of NTPC Green was subscribed 33% on Day 1 on Tuesday. The issue received consolidated share bids of 19.46 crore as against 59,31,67,575 shares available for subscription.
The renewable energy arm of NTPC, which opened for subscription today saw the retail portion fully subscribed at 1.33 times. The quotal for non-institutional investors (NIIs) was subscribed 15% while the portion for qualified institutional buyers (QIBs) received 87,906 share bids as against 25,88,23,531 shares available for subscription.
The renewable energy arm of NTPC, which opened for subscription today saw the retail portion fully subscribed at 1.33 times. The quotal for non-institutional investors (NIIs) was subscribed 15% while the portion for qualified institutional buyers (QIBs) received 87,906 share bids as against 25,88,23,531 shares available for subscription.
NTPC Green Energy IPO Live Updates: Where will NTPC Green be in 2030 ? Why should you subscribe to the IPO? Management answers
- NTPC Green Energy aims for 60 GW capacity by FY32, with 3.32 GW operational and 13 GW under construction.
- They focus on large-scale solar and wind projects, prioritizing efficient execution over smaller ventures to avoid connectivity delays.
NTPC Green Energy IPO Live Updates: Peer Comparison
(Source: Chola Securities)
NTPC Green Energy IPO Live Updates: Risk Factors
- Off-taker risk: NTPC Green’s revenue is highly dependent on a concentrated pool of power purchasers, primarily central and state government utilities. In FY23/FY24/1HFY25, its top 9 off-takers accounted for 98.5%, 97.6%, and 98% of revenue, respectively. Losing any key customer or facing their financial instability could impact operations and financial performance.
- Raw material risk: The company relies heavily on the availability and cost of solar panels, wind turbines, and other components for its projects. With no long-term supply contracts in place, any disruption or price volatility in material supply could adversely affect operations and finances.
- Execution risk: Success depends on winning competitive bids for renewable energy projects, requiring extensive research, planning, and low-margin operations. Cost overruns or project execution failures could harm the company’s business and financial health.
- Geographic risk: Over 62% of NTPC Green’s renewable energy capacity is in Rajasthan. Any social, political, economic, or natural disruptions in the region could negatively affect business and financial performance
NTPC Green Energy IPO Live Updates: NTPC shares give up intra-day gains, turn negative
Price as on 03.18.04 PM, Click on company names for their live prices.
NTPC Green Energy IPO Live Updates: Cumulative bids & quantity for NTPC Green Energy IPO
NTPC Green Energy IPO Live Updates: NTPC Green IPO subscribed 25% on Day 1 so far, retail portion fully booked. Check GMP, other details
The IPO of NTPC Green, the renewable energy subsidiary of NTPC, opened for subscription earlier today and has achieved 25% subscription on its first day, driven largely by strong retail investor interest.
By around 2 PM, the retail portion of the issue was fully subscribed, receiving 8,87,57,046 bids against the 8,62,74,509 shares reserved for this category. Meanwhile, the non-institutional investors (NII) segment had subscribed to 10% of its allocated portion.
By around 2 PM, the retail portion of the issue was fully subscribed, receiving 8,87,57,046 bids against the 8,62,74,509 shares reserved for this category. Meanwhile, the non-institutional investors (NII) segment had subscribed to 10% of its allocated portion.
We believe NTPC Green Energy Ltd IPO brings investors an opportunity to invest in a leading player of India’s renewable energy sector, backed by the formidable resources and expertise of NTPC Ltd. We think with a robust portfolio of 26,071 MW, including operational, contracted and pipeline projects, the company demonstrates strong growth potential. Its focus on long-term Power Purchase Agreements (PPAs) with government and public utilities ensures stable revenue streams, while its diversified geographical presence mitigates risk.
- Rajan Shinde, Research Analyst, Mehta Equities Ltd
NTPC Green Energy IPO Live Updates: Retail portion sails through on Day 1; overall subscription at 24%
NTPC Green Energy IPO Live Updates: Retail portion sails through on Day 1; overall subscription at 24%
NTPC Green Energy IPO Live Updates: Competitive Strength
- Prompted by NTPC Limited, with its extensive experience in large-scale project execution, maintains strong relationships with offtakers and suppliers and showcases significant financial strength.
- As of June 2024, the company has a Portfolio of 14,696 MWs solar and wind projects.
- Experienced team in renewable energy project execution.
NTPC Green Energy IPO Live Updates | NTPC Green Energy IPO Subscription Status at 1:30 PM
- Total: 0.23 times
- Reservation PortionShareholder: 0.39 times
- Employee Reserved: 0.12 times
- Non Institutional Investors(NIIS): 0.09 times
- Retail Individual Investors (RIIs): 0.95 times
- Qualified Institutional Buyers (QIBs): Nil
NTPC Green Energy IPO Live Updates | NTPC Green's outlook for 2030 and reasons to subscribe to the IPO: Insights from management
"Our clear-cut strategy is that we will be going very steadily while taking care of the good returns, but we are at present ready to execute large-scale projects in different parts of the country,” said Gurdeep Singh, CMD, NTPC & NTPC Green Energy. He added that NTPC Green prefers large-scale solar and wind projects over smaller 100-200 MW ones, as the latter must wait for connectivity at the pooling station. In contrast, large-scale renewable parks have the pooling station brought to them.
NTPC Green Energy IPO Live Updates: Why should you subscribe to the IPO?
NTPC Green favours large scale solar projects plus the wind projects rather than the smaller ones of 100 to 200 megawatt because smaller projects have to be in the queue to get connectivity in the pooling station. In case of a large-scale renewable energy park, the pooling station comes to the park.
NTPC Green Energy IPO Live Updates: Product portfolio
NTPC Green Energy IPO Live Updates: Growth Strategy for NTPC Green
- Continue to grow the project pipeline through prudent bidding and strategic joint ventures with PSUs and private corporates
- Focus on projects in new energy solutions, such as green hydrogen, green chemicals, and battery energy storage systems (BESS)
- Drive efficiency and cost reductions in project execution, as well as in operations and maintenance
- Continue to contribute to India’s sustainability efforts (Source: SBI Securities)
NTPC Green Energy IPO Live Updates: RII portion booked 83%, employee reserved 11%
NTPC Green Energy IPO Live Updates: NII portion booked 7% so far
NTPC Green Energy IPO Live Updates | NTPC Green Energy IPO Subscription Status
- Total: 0.19 times
- Reservation PortionShareholder: 0.32 times
- Employee Reserved: 0.10 times
- Non Institutional Investors(NIIS): 0.07 times
- Retail Individual Investors (RIIs): 0.79 times
- Qualified Institutional Buyers (QIBs): Nil
NTPC Green Energy IPO Live Updates: KPI comparison with Industry Peers
NTPC Green Energy IPO Live Updates: Financials
NTPC Green Energy IPO Live Updates: Key Risks
- Heavy reliance on a few major customers creates revenue vulnerability.
- Supply disruptions for solar and wind components can impact operations.
- Concentration of projects in Rajasthan increases risk from local disruptions.
NTPC Green Energy IPO Live Updates | NTPC Green Energy IPO Subscription Status
- Total: 0.15 times
- Reservation PortionShareholder: 0.26 times
- Employee Reserved: 0.08 times
- Non Institutional Investors(NIIS): 0.05 times
- Retail Individual Investors (RIIs): 0.64 times
- Qualified Institutional Buyers (QIBs): Nil
In terms of valuation, the IPO is priced aggressively at a P/E ratio of 264x as of FY 2024, which is significantly higher than its peers The aggressive valuation suggests that the IPO may be suited for only investors with a high-risk appetite and investing for long term (3-5 yrs), GMP indicates minimal listing gains. The company has commendable growth potential in a growing sector, its high valuation could pose risks for investors investing with a view of short-term gains.
- Gaurav Garg, Research Analyst at Lemonn Markets Desk
NTPC Green Energy IPO Live Updates: Issue booked 12% so far on Day 1, retail bids cross halfway mark
The initial public offering (IPO) of NTPC Green, the renewable energy subsidiary of NTPC, opened for subscription earlier today and has been subscribed to 6% on the first day of bidding.
As of 10:40 AM, retail investors led the subscription, applying for 29% of their allocated portion by bidding for 2,48,66,634 shares out of the 8,62,74,509 shares reserved for them. Non-institutional investors (NIIs) followed, subscribing to 3% of their allotment so far.
As of 10:40 AM, retail investors led the subscription, applying for 29% of their allocated portion by bidding for 2,48,66,634 shares out of the 8,62,74,509 shares reserved for them. Non-institutional investors (NIIs) followed, subscribing to 3% of their allotment so far.
NTPC Green Energy IPO Live Updates: Sbi Securities on NTPC Green Energy IPO
At the upper price band of Rs 108, NGEL is valued at FY24 EV/EBITDA of 53.4x on post issue capital. The company will increase its operational capacity to 6/11/19 GW by FY25E/FY26E/FY27E respectively from 3.3 GW as of Sep’24. Basis our back of the envelope calculation, at upper price band, the issue is priced at FY25E/FY26E/FY27E EV/EBITDA multiple of 35.3x/18.3x/10.1x and EV/MW of Rs 16.8 cr/9.0 cr/5.1 cr respectively.
The company has exponential growth potential in medium term with its Revenue/EBITDA/PAT expected to grow at a CAGR of 79.0%/117.2%/123.8% to Rs 11,250 cr/9,563 cr/1,980 cr respectively over FY24-27E period. We recommend investors to subscribe to the issue at cut-off price for long term.
The company has exponential growth potential in medium term with its Revenue/EBITDA/PAT expected to grow at a CAGR of 79.0%/117.2%/123.8% to Rs 11,250 cr/9,563 cr/1,980 cr respectively over FY24-27E period. We recommend investors to subscribe to the issue at cut-off price for long term.
NTPC Green Energy IPO Live Updates: Expect View | Geojit Financial Services
At the upper price band of ₹108, NGEL is available at P/Bv of 4.9x (on FY25E annualised financials), which appears to be fairly priced. We assign a “Subscribe” rating for the issue on a long-term investment basis, considering its strong brand recall, superior execution capabilities, portfolio expansions, investment in nextgen energy solutions (Battery Energy Storage Systems & Green Hydrogen derivatives), and promising industry outlook.
NTPC Green Energy IPO Live Updates | NTPC Green Energy IPO Subscription Status
Total: 0.09 times
Reservation PortionShareholder: 0.15 times
Employee Reserved: 0.05 times
Non Institutional Investors(NIIS): 0.04 times
Qualified Institutional Buyers (QIBs): Nil
Reservation PortionShareholder: 0.15 times
Employee Reserved: 0.05 times
Non Institutional Investors(NIIS): 0.04 times
Qualified Institutional Buyers (QIBs): Nil
NTPC Green Energy IPO Live Updates | Interest Coverage Ratio
NTPC Green IPO Live Today | Interest Coverage Ratio determines the ability of a company to fulfill its interest obligations. It is a ratio that compares company earnings (before interest and taxes) to interest expenses.
The company’s Interest coverage ratio evolves between 2.5 times to 3 times and it outperforms its industry peers as the industry average is around 1.33 times.
The company’s Interest coverage ratio evolves between 2.5 times to 3 times and it outperforms its industry peers as the industry average is around 1.33 times.
NTPC Green Energy IPO Live Updates | Key weaknesses
- Curtailment orders from Load Dispatch: Load dispatch centers in India were established to maintain an integrated power system across regions, ensuring efficient electricity dispatch, grid monitoring, and providing necessary directives to uphold grid stability.
- Government Support: The development and profitability of renewable energy projects in the locations in which the company operate are dependent on policy and regulatory frameworks that support such developments.
- Concentrated Pool of Utilities and Power Purchase: In most Indian jurisdictions, the transmission and distribution of electricity are predominantly managed by central and state government utility companies, resulting in a concentrated pool of power purchasers for utility-scale solar and wind energy projects.
As supported by NTPC’s financial strength and ambitious renewable energy targets, the company is well-equipped to capitalize on the increasing demand for sustainable energy solutions. Hence, looking at attributes we recommend only risk-taking investors to “SUBSCRIBE” the NTPC Green Energy Ltd IPO for long-term perspective only.
- Rajan Shinde, Research Analyst, Mehta Equities
NTPC Green Energy IPO Live Updates | Key strengths
- Promoted By NTPC: NTPC Green Energy Limited (NGEL), a subsidiary of NTPC Limited—one of India’s leading power companies with nearly five decades of expertise—stands as a key player in the renewable energy sector.
- Consistent Cash Flows due to contacts with Government Entities:The utility-scale solar and wind energy projects are backed by long-term power purchase agreements (PPAs),
- Futuristic Approach: Projections suggest that India will require 41.7 GW/208 GWh of battery storage and 18.9 GW of pumped hydro storage by FY 2030. In line with these future demands, efforts are being directed towards advancements in hydrogen, green chemicals, and battery storage technologies.
NTPC Green Energy IPO Live Updates | Expert comments by Rajan Shinde, Research Analyst, Mehta Equities
We believe NTPC Green Energy Ltd IPO brings investors an opportunity to invest in a leading player of India’s renewable energy sector, backed by the formidable resources and expertise of NTPC Ltd.
We think with a robust portfolio of 26,071 MW, including operational, contracted and pipeline projects, the company demonstrates strong growth potential. Its focus on long-term Power Purchase Agreements (PPAs) with government and public utilities ensures stable revenue streams, while its diversified geographical presence mitigates risk.
We also think NTPC Green's strategic expansion into green hydrogen, green chemicals and battery storage further enhances its growth prospects, positioning it at the forefront of India’s energy transition.
We think with a robust portfolio of 26,071 MW, including operational, contracted and pipeline projects, the company demonstrates strong growth potential. Its focus on long-term Power Purchase Agreements (PPAs) with government and public utilities ensures stable revenue streams, while its diversified geographical presence mitigates risk.
We also think NTPC Green's strategic expansion into green hydrogen, green chemicals and battery storage further enhances its growth prospects, positioning it at the forefront of India’s energy transition.
NTPC Green Energy IPO Live Updates | Key IPO Details
NTPC Green Energy IPO Live Updates | NTPC Green's Rs 10,000 cr IPO opens for subscription. Should you apply?
NTPC Green IPO Live Today | The initial public offer (IPO) of NTPC Green, the renewable energy arm of NTPC, opened for subscription today. The issue, which is entirely a fresh equity sale of Rs 10,000 crore, will be available for bidding till November 22.
The proceeds from the offering will be used for investment in its wholly-owned subsidiary, NTPC Renewable Energy, for the repayment of debt and other general corporate purposes.
The proceeds from the offering will be used for investment in its wholly-owned subsidiary, NTPC Renewable Energy, for the repayment of debt and other general corporate purposes.
NTPC Green Energy IPO GMP Live Updates: NTPC Green Energy IPO GMP Status
NTPC Green IPO Live Today | The GMP of NTPC Green is currently Rs 1 in the unlisted markets, which indicates a premium of 0.9% over the issue price.
NTPC Green Energy IPO Live Updates: NTPC Green expansion driving stable returns
NTPC Green Energy Limited (NGEL) leverages its portfolio across six Indian states to mitigate region-specific risks while optimizing solar and wind resources. The company benefits from long-term power purchase agreements (PPAs) averaging 25 years, providing a stable revenue stream.
In FY24, NGEL achieved a weighted average tariff of ₹3.4/kWh, exceeding the ₹3.1–3.3/kWh required for a 10–13% equity internal rate of return (IRR). Its hybrid tariffs, ranging from ₹3.15–3.20/kWh, outperform standalone solar tariffs (₹2.55–2.56/kWh) and are competitive with wind power tariffs (₹3.40–3.75/kWh).
NGEL reported FY24 revenue of ₹19.6 billion, reflecting a robust CAGR of 46.82%, supported by an impressive EBITDA margin of over 85%. Operationally, the company maintained 99.2% plant availability and achieved capacity utilization factors (CUFs) of 22.8% for solar energy and 33.2% for wind energy, highlighting its consistent performance and profitability.
In FY24, NGEL achieved a weighted average tariff of ₹3.4/kWh, exceeding the ₹3.1–3.3/kWh required for a 10–13% equity internal rate of return (IRR). Its hybrid tariffs, ranging from ₹3.15–3.20/kWh, outperform standalone solar tariffs (₹2.55–2.56/kWh) and are competitive with wind power tariffs (₹3.40–3.75/kWh).
NGEL reported FY24 revenue of ₹19.6 billion, reflecting a robust CAGR of 46.82%, supported by an impressive EBITDA margin of over 85%. Operationally, the company maintained 99.2% plant availability and achieved capacity utilization factors (CUFs) of 22.8% for solar energy and 33.2% for wind energy, highlighting its consistent performance and profitability.
NTPC Green Energy IPO Live Updates: NTPC shares up 2% in early trade as NTPC Green Energy’s IPO opens today
Shares of state-owned NTPC jumped 2.8% to their day’s high of Rs 376.90 on the BSE today as the company’s arm NTPC Green Energy’s initial public offering (IPO) opens for public subscription today.
Price as on 09.30.35 AM, Click on company names for their live prices.
NTPC Green Energy IPO Live Updates: About NTPC Green Energy
NTPC Green, a subsidiary of NTPC, stands as the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of September 2024 and power generation during FY24.
Its renewable energy portfolio includes both solar and wind power assets, spanning multiple locations across more than six states. This geographical diversity helps reduce the risk of location-specific generation variability, ensuring a more stable energy output.
Its renewable energy portfolio includes both solar and wind power assets, spanning multiple locations across more than six states. This geographical diversity helps reduce the risk of location-specific generation variability, ensuring a more stable energy output.
NTPC Green Energy IPO Live Updates: NTPC shares in focus as NTPC Green Energy’s IPO opens today
Shares of state-owned NTPC are expected to be in the spotlight on Tuesday as the initial public offering (IPO) of its subsidiary, NTPC Green Energy, opens for public subscription today.
The IPO is scheduled to remain open for subscription until November 22.
The IPO is scheduled to remain open for subscription until November 22.
NTPC Green Energy IPO Live Updates: Ahead of IPO, NTPC Green Energy collects Rs 3,960 crore from anchor investors
NTPC Green Energy, the renewable energy subsidiary of NTPC, raised ₹3,960 crore from anchor investors on Monday, ahead of its IPO opening for public subscription.
NTPC Green Energy IPO Live Updates: Proceeds of NTPC Green Energy IPO
The proceeds from the offering will be used for investment in its wholly-owned subsidiary, NTPC Renewable Energy, for the repayment of debt and other general corporate purposes.
NTPC Green Energy IPO Live Updates: Check GMP, Price Band, Subscription, Key Dates, Review | Apply or Not
The initial public offering (IPO) of NTPC Green, the renewable energy subsidiary of NTPC, opens for subscription today. This IPO comprises a fresh equity issue worth ₹10,000 crore and will remain open for bidding until November 22.
NTPC Green Energy IPO Live: NTPC Green Energy IPO opens today. Here's what GMP indicates
The initial public offering (IPO) of NTPC Green Energy is scheduled to open for public subscription on November 19 and will remain open until November 22.
In the grey market, the shares are currently trading at a premium of ₹1-2, reflecting a modest 1% premium over the issue price.
In the grey market, the shares are currently trading at a premium of ₹1-2, reflecting a modest 1% premium over the issue price.
NTPC Green Energy IPO Live: NTPC Green Energy IPO looks well placed to take advantage of India’s expanding renewable energy landscape
NTPC Green Energy (NGEL), a wholly-owned subsidiary of the state-run NTPC, focuses on renewable energy generation and aims to raise ₹10,000 crore through fresh equity in its IPO. The proceeds will be used primarily to partly prepay debt. Following the IPO, NTPC’s stake in NGEL will decrease from 100% to 89%. Notably, the company operates with an industry-leading EBITDA margin of approximately 90%.
NTPC Green Energy IPO Live Updates: NTPC Green seeks $12 billion valuation for its IPO
NTPC Green Energy Ltd. is reportedly aiming for a valuation of approximately $12 billion, potentially making it one of India’s largest initial public offerings in the renewable energy sector, according to sources familiar with the development.
NTPC Green Energy IPO Live Updates: Book running lead managers to the issue
IDBI Capital Markets and Securities, HDFC Bank, IFL Capital Services (formerly known as IIFL Securities) and Nuvama Wealth Management are the book running lead managers to the issue.
NTPC Green Energy IPO Live Updates: NTPC Green IPO proceeds will be used to meet capex needs; no OFS component: Management
The proceeds from NTPC Green Energy's ₹10,000-crore IPO will be utilized to fund capital expenditures for ongoing and upcoming projects. This offering involves a dilution through the issuance of new shares, with no existing shares being sold at this stage.
