NTPC Green Energy IPO gets 2.4 times bids on Day 3. Check GMP, price band, subscription, key dates and review

The initial public offer (IPO) of NTPC Green Energy, the renewable energy arm of NTPC, which opened for subscription on November 19, was fully subscribed by Day 3 and got 2.4 times bids for the shares on offer.

Retail investors led the bidding, subscribing to the issue 3.39 times, while non-institutional investors (NIIs) subscribed 81% of the offering. The allocation for qualified institutional buyers was 3.32 times subscribed.

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.

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NTPC Green IPO: Opening Date, Allotment and Listing Date

NTPC Green IPO kicked-off for subscription on November 19 and will close on November 22. The allotment for the IPO will be completed on November 25 and the listing is scheduled for November 27.

NTPC Green IPO: GMP today

The GMP of NTPC Green is currently Re 1 in the unlisted markets, which indicates a premium of 1% over the issue price.

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NTPC Green IPO: Price band

NTPC Green has fixed a price band of Rs 102-108 per share, where investors can bid for 138 shares in one lot and multiples thereafter.

NTPC Green IPO review

Most analysts advised investors to subscribe to the issue as the company has a prudent business model and strong earnings growth with improved financials and return ratios.

"NGEL has deep domain expertise of the management team focusing on new energy solutions like green hydrogen, green chemicals and storage with prudent growth and contributing towards fulfilling India’s net zero goals," said Reliance Securities.

"The company has exponential growth potential in medium term with its revenue, EBITDA, PAT expected to grow at a CAGR of 79%, 117.2% and 123.8%, respectively over FY24-27E period. We recommend investors to subscribe to the issue at cut-off price for long term," said SBI Securities.

Geojit, said, "At the upper price band of Rs 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."

About NTPC Green

NTPC Green, a subsidiary of NTPC, is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of September 24 and power generation in FY24.

Its renewable energy portfolio encompasses both solar and wind power assets with presence across multiple locations in more than six states which helps mitigate the risk of location-specific generation variability.

The operational capacity was 3,220 MW of solar projects and 100 MW of wind projects as of September 2024.

NTPC Green Energy’s revenue from operations has grown at a CAGR of 46.82% from Rs 910.42 crore in fiscal 2022 to Rs 1,962.6 crore in fiscal 2024. Profit after tax grew at a CAGR of 90.75% from Rs 94.74 crore in FY22 to Rs 344.72 crore in FY24.

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.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)