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PremiumNTPC Green Energy IPO Day 3 LIVE Updates: The initial public offering (IPO) of the government-owned NTPC Green Energy IPO commenced for subscription on Tuesday, November 19, and closed today, November 22. At the end of the third day, NTPC Green Energy IPO was subscribed 2.42 times, with retail investors subscribing to the issue 3.44 times the shares offered. The qualified institutional buyers (QIBs) segment is booked 3.42 times and the Non-Institutional Investors (NIIs) portion is booked 81 per cent.
NTPC Green Energy's IPO, valued at ₹10,000 crore, is comprised entirely of fresh issues of new equity shares, with no segment designated for an offer-for-sale (OFS). NTPC Green Energy is recognised as a central public sector enterprise with 'Maharatna' status, concentrating on renewable energy through solar and wind power projects across more than six states.
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NTPC Green Energy's IPO GMP today is ₹1.85. According to investorgain.com, this indicates that NTPC Green Energy's share price was trading positive in the grey market. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of NTPC Green Energy shares is indicated at ₹109.85 apiece, compared to the IPO price of ₹108.
NTPC Green Energy IPO was subscribed 2.42 times by the end of the third and final day of subscription, mostly led by retail investors and also by QIBs today. The portion reserved for retail investors was booked the highest at 3.44 times, while QIB' portion was booked 3.32 times. NIIs bid the least at 81 per cent.
At the end of the Day 2, NTPC Green Energy IPO was subscribed 93 per cent, with retail investors subscribing to the issue 2.38 times the shares offered. The qualified institutional buyers (QIBs) segment is booked 75% and the Non-Institutional Investors (NIIs) portion is booked 34% so far.
Rajan Shinde, Research Analyst, Mehta Equities Ltd on NTPC Green Energy IPO:
“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. By looking at the financials, the company has shown a substantial growth in revenue from operations of 1057% in FY 2024 and net profit by 101% in FY 2024. On valuation parse at the upper price band Rs. 108/-, the issue is asking a Market Cap of Rs. 91000 cr and based on FY 2025e annualised earnings and fully diluted post IPO paid-up capital, the company is asking for a PB of 4.96x and PE of 259.56x which appears aggressively priced.
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."
As of H1FY25, NGEL’s portfolio comprised 16,896 MW, including 3,320 MW of operational projects and 13,576 MW of contracted and awarded projects. Additionally, it has 9,175 MW capacity in the pipeline, bringing the total capacity to 26,071 MW. NGEL serves 17 offtakers across 41 solar and 11 wind projects and is currently constructing 36 renewable energy projects totalling 13,576 MW in 6 states.
The initial public offer of NTPC Green Energy IPO has been subscribed 2.39x on the third day of subscription today, at 16:27 IST, as per BSE data.
The initial share sale received bid for 1,41,98,33,424 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 3.35 times subscription while the quota for non-institutional investors got subscribed 80%. The qualified institutional buyers (QIBs) part is booked 3.32 times. The shareholder portion has been subscribed 1.56 times, and the employee portion has been booked 78%.
As of September 30, 2024, the company had 17 offtakers across 41 solar and 11 wind projects, including government agencies and public utilities with whom it has PPAs or Letters of Award. The top nine offtakers account for a significant portion of its business.
The company has built long-term relationships with 17 off-takers across 41 solar projects and 11 wind projects. Among these, nine off-takers include government agencies and public utilities, which have power purchase agreements (PPAs) with an average duration of 25 years. This diverse and stable customer base ensures reliable revenue for NTPC Green Energy, enabling the company to focus on expanding its project portfolio while maintaining financial stability through consistent cash flows.
The initial public offer of NTPC Green Energy IPO has been subscribed 2.31x on the third day of subscription today, at 15:12 IST, as per BSE data.
The initial share sale received bid for 1,36,72,54,596 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 3.17 times subscription while the quota for non-institutional investors got subscribed 69%. The qualified institutional buyers (QIBs) part is booked 3.28 times. The shareholder portion has been subscribed 1.44 times, and the employee portion has been booked 73%.
NTPC Green Energy has showcased an impressive financial growth, with revenue reaching ₹19,626 Mn in FY24, representing a 2 Year CAGR of 46.82%. Additionally, operating EBITDA saw significant increases, maintaining strong margins between 86%-90%. NGEL's established financial track record, coupled with significant growth opportunities and a well-planned capex strategy, positions the company for substantial growth in the renewable energy sector.
Furthermore, its valuation at an EV/EBITDA of 23.2x on FY24 EBITDA makes it cheaper compared to peers. Consequently, we assign 'SUBSCRIBE' rating for the IPO.
Arun Kejriwal, the founder of Kejriwal Research and Investment Services, said that NTPC Green Energy IPO valuations are expensive, considering other companies in a similar field. So, one should not apply for listing gains at all. Even if one has a long-term perspective on the share, waiting for the share to list before deciding to enter is likely to get it cheaper than the issue price. So again, this is a very clear-cut view of what to do with the shares.
The initial public offer of NTPC Green Energy IPO has been subscribed 1.32x on the third day of subscription today, at 13:15 IST, as per BSE data.
The initial share sale received bid for 78,50,08,032 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 2.91 times subscription while the quota for non-institutional investors got subscribed 50%. The qualified institutional buyers (QIBs) part is booked 1.28 times. The shareholder portion has been subscribed 1.27 times, and the employee portion has been booked 59%.
As of the date of this Red Herring Prospectus, the Company operates through three subsidiaries: EIEPL Bareilly Infra Engineers Private Limited, EIEL Mathura Infra Engineers Private Limited, and Enviro Infra Engineers (Saharanpur) Private Limited. Each subsidiary plays a pivotal role in the Company's operations, contributing to its infrastructure and engineering projects across various regions.
The firm, along with the NTPC Group, believes it has strong in-house experience in executing and procuring renewable energy projects. The in-house team collaborates with third-party aggregators, developers, and EPC contractors to manage the land acquisition process. The company's power projects are primarily located on land leased from state governments and third parties, as well as on freehold land purchased from private individuals and entities. As of September 30, 2024, the firm owned approximately 8,900 acres of freehold land and about 45,700 acres of leasehold land associated with its projects.
The initial public offer of NTPC Green Energy IPO has been subscribed 1.04x on the third day of subscription today, at 11:48 IST, as per BSE data.
The initial share sale received bid for 61,60,11,714 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 2.76 times subscription while the quota for non-institutional investors got subscribed 43%. The qualified institutional buyers (QIBs) part is booked 75%. The shareholder portion has been subscribed 1.19 times, and the employee portion has been booked 53%.
Renewable energy is a significant and growing industry in India. During the twenty-sixth Conference of the Parties climate summit held in Glasgow, Scotland, the Prime Minister of India presented updated nationally determined contributions (NDCs). These commitments include:
1. Reducing the emissions intensity of its GDP by 45% by 2030 compared to 2005 levels.
2. Achieving approximately 50% of cumulative electric power capacity from non-fossil fuel-based energy sources by 2030.
3. Reaching the target of net zero emissions by the year 2070, as noted in the CRISIL report.
The initial public offer of NTPC Green Energy IPO has been subscribed 1x on the third day of subscription today, at 10:54 IST, as per BSE data.
The initial share sale received bid for 59,12,10,492 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 2.63 times subscription while the quota for non-institutional investors got subscribed 39%. The qualified institutional buyers (QIBs) part is booked 75%. The shareholder portion has been subscribed 1.12 times, and the employee portion has been booked 49%.
India's energy demand reached 1,627 billion units (BU) in FY24 and is expected to grow at a compound annual growth rate (CAGR) of approximately 5.5% from FY24 to FY29, reaching an estimated 2,170 BU. This growth will be fueled by infrastructure-linked capital expenditures, solid economic fundamentals, and the expansion of power distribution through enhanced transmission and distribution (T&D) infrastructure.
Additionally, major reforms initiated by the Government of India aim to improve the overall health of the power sector, particularly focusing on state distribution utilities.
The initial public offer of NTPC Green Energy IPO has been subscribed 96% on the third day of subscription today, at 10:09 IST, as per BSE data.
The initial share sale received bid for 57,09,67,410 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 2.51 times subscription while the quota for non-institutional investors got subscribed 37%. The qualified institutional buyers (QIBs) part is booked 75%. The shareholder portion has been subscribed 1.07 times, and the employee portion has been booked 45%.
NTPC Green Energy's focus on solar energy, advancements in energy storage, and green hydrogen aligns with market trends, positioning it well for long-term growth. The renewable energy sector in India offers immense opportunities, and NGEL’s strategic importance as a PSU enhances its ability to capitalize on these opportunities. NGEL has strong growth potential, with expected annual growth rates of 79% for revenue, 117.2% for EBITDA, and 123.8% for net profit from FY24 to FY27.
Leading brokerage firms like Anand Rathi, SBI Securities, Reliance Securities, Adroit Financial Services, Arete Securities, Arihant Capital, Geojit Financial, GEPL Capital, BP Equities, Canmoney, Chola Securities, Marwadi Financial Service, Mehta Equities, Ventura Securities, Swastika Investmart have given a “Subscribe" rating to the issue highlighting the company’s plans to expand its operational capacity from 3.3 GW to 19 GW by FY27.
NTPC Green Energy is a preferred partner for PSUs aiming to meet renewable energy targets. It has signed joint venture agreements with entities like Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL), Mahatma Phule Renewable Energy & Infrastructure Technology Ltd (MAHAPRET), Damodar Valley Corporation (DVC), and others, alongside MOUs and term sheets with private companies.
NTPC Green Energy IPO GMP today or grey market premium was ₹0, which meant shares were trading at their issue price of ₹108 with no premium or discount in the grey market according to investorgain.com
Grey market activity over the past 19 sessions indicates that today's IPO GMP is down and is likely to continue to decline. According to experts on investorgain.com, the lowest GMP is ₹0, and the maximum is ₹25.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
NTPC Green Energy IPO Day 2 LIVE Updates: As of November 21, the grey market premium (GMP) stands at ₹0.20 per share. With the upper price band for the issue at ₹108, the shares are expected to be listed at ₹108.2 per share, a premium of 0.19%.
Grey market premium (GMP) is the investor's willingness to pay more for a public issue.
NTPC Green Energy IPO Day 2 LIVE Updates: NTPC Green Energy Ltd's public issue was subscribed 93% on the second day.
Retail investors subscribed to the issue 2.38 times the shares offered. The qualified institutional buyers (QIBs) followed the retail investors, coming at 75% of the shares available. The Non-Institutional Investors (NIIs) portion was booked for 34% of the shares offered.
The IPO will open for the final day of public bidding on Friday, November 22.
The initial public offer of NTPC Green Energy IPO has been subscribed 93% on the second day of subscription today, at 16:54 IST, as per BSE data.
The initial share sale received bid for 54,91,53,336 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 2.37 times subscription while the quota for non-institutional investors got subscribed 34%. The qualified institutional buyers (QIBs) part is booked 75%. The shareholder portion has been subscribed 1.01 times, and the employee portion has been booked 40%.
As a subsidiary of NTPC operating in a high-growth segment, the company demonstrates significant future potential, leveraging NTPC's extensive experience in the sector. A peer comparison of key fundamentals presents a favorable image, with the company outperforming its peers in revenue growth, profit margins, and leverage ratios.
However, its capacity utilization factor (CUF), a critical measure of a plant's electricity generation efficiency, is relatively lower for its solar and wind projects compared to competitors. Additionally, an analysis of the company's price-to-earnings (P/E) ratio against its peers indicates overvaluation, raising concerns about its long-term wealth creation prospects. Consequently, investors are advised to avoid the IPO.
The initial public offer of NTPC Green Energy IPO has been subscribed 89% on the second day of subscription today, at 15:27 IST, as per BSE data.
The initial share sale received bid for 52,54,72,536 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 2.25 times subscription while the quota for non-institutional investors got subscribed 30%. The qualified institutional buyers (QIBs) part is booked 74%. The shareholder portion has been subscribed 95%, and the employee portion has been booked 36%.
“In place execution capabilities backed by strong parentage, industry growth tailwind and play in Battery Energy Storage System (BESS) augurs well for growth. However, the IPO is aggressively priced vs its listed peers which is trading at an EV/EBITDA of 38-40x. We thereby assign “Subscribe for Long-Term" rating to the IPO," the brokerage said.
The company is making investments in hydrogen, green chemical, and battery storage solutions and capabilities, along with related technologies, such as completing an electrolyser partnership and building a green hydrogen center in Pudimadaka. In order to supplement solar and wind power, it plans to deploy grid-scale battery storage as part of robust and dispatchable renewable energy (FDRE)/round-the-clock (RTC) initiatives.
The initial public offer of NTPC Green Energy IPO has been subscribed 86% on the second day of subscription today, at 14:15 IST, as per BSE data.
The initial share sale received bid for 51,21,54,294 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 2.17 times subscription while the quota for non-institutional investors got subscribed 28%. The qualified institutional buyers (QIBs) part is booked 74%. The shareholder portion has been subscribed 91%, and the employee portion has been booked 35%.
"The company’s revenue from operations has grown at a CAGR of 46.82% from ₹ 910.42 Cr in FY 2022 to ₹1,962.60 Cr in FY 2024. The company is investing in hydrogen, green chemical and battery storage capabilities and solutions as well as associated technologies. NTPC GEL holds a vision of 60 GW RE capacity by 2032. We suggest ‘SUBSCRIBE’ to the issue with Long term Investment perspective," the brokerage said.
"Considering the TTM-Sept 24 EPS of ₹0.52 on a post-issue basis, company is set to list at a P/E of approximately ~208x with a market cap of ₹91,000 cr whereas its peer, Adani Green Energy Limited is trading at P/E ratio of approximately ~182x respectively.
We assign “Subscribe" rating to this IPO as company is promoted by NTPC Limited, which has extensive experience in executing large- scale projects, long term relationships with offtakers and suppliers and financial strength," the brokerage said.
The initial public offer of NTPC Green Energy IPO has been subscribed 85% on the second day of subscription today, at 13:18 IST, as per BSE data.
The initial share sale received bid for 50,19,59,406 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 2.11 times subscription while the quota for non-institutional investors got subscribed 27%. The qualified institutional buyers (QIBs) part is booked 74%. The shareholder portion has been subscribed 88%, and the employee portion has been booked 33%.
There is huge potential for power demand in India as electricity requirements have risen at a CAGR of approximately 8.4% between FY21-24 and expects power demand to grow by 5.5-6.0% in the next five years which will be supported by infrastructure-linked capital expenditure.
“Backed by NTPC’s financial strength, NGEL is poised for growth with a 26,071 MW portfolio and an aggressive expansion plan. Its revenue has grown at a CAGR of 46.8%, reaching ₹1,963 crore in FY24, with strong EBITDA and PAT margins. NGEL's strategic focus on high-capacity utilization, low costs, and long-term PPAs ensures stable revenue streams, positioning it as a key player in India’s energy transition and net-zero goals. Hence, we recommend an “Subscribe" rating to this issue for the long-term gains," the brokerage said.
The initial public offer of NTPC Green Energy IPO has been subscribed 48% on the second day of subscription today, at 11:30 IST, as per BSE data.
The initial share sale received bid for 28,64,65,506 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 1.95 times subscription while the quota for non-institutional investors got subscribed 25%. The qualified institutional buyers (QIBs) part is yet to be booked. The shareholder portion has been subscribed 82%, and the employee portion has been booked 30%.
The company's financial performance has improved significantly, with revenue increasing from Rs. 910 crores in FY22 to Rs. 1,963 crores in FY24. This represents a compound annual growth rate (CAGR) of 46.8%. Alongside this growth, margins and profitability have also improved, with profit after tax (PAT) growing at a CAGR of 90.8% during the same period. Additionally, the average capacity utilisation factor (CUF) for solar assets has increased from 19.2% to 23.9% between FY22 and FY24, resulting in a threefold increase in power generation.
The company is actively exploring growth in green hydrogen and battery storage. It is establishing a green hydrogen hub at Pudimadaka, Andhra Pradesh, and is finalizing partnerships for electrolyzer production. Additionally, NGEL plans to build a grid-scale battery storage facility to support solar and wind power integration, while also participating in grid-scale battery storage tenders for grid balancing. The company has leased 1,200 acres of land at Pudimadaka and has made a capital advance of ₹7 billion, although detailed capex plans are still under development.
“At the upper price band of ₹108, NGEL is valued at FY24 EV/EBITDA of 53.4x on post issue capital. The company will increase its operational capacity to approximately 19 GW by FY27 and 60 GW by 2032 from 3.3 GW as of Sep'24. The company has exponential growth potential in medium term over FY24 to FY27 period. We recommend to SUBSCRIBE to the issue for long term," the brokerage said.
The initial public offer of NTPC Green Energy IPO has been subscribed 38% on the second day of subscription today, at 10:06 IST, as per BSE data.
The initial share sale received bid for 22,82,08,116 shares against 59,31,67,575 shares on offer, according to BSE.
The portion for retail investors received 1.54 times subscription while the quota for non-institutional investors got subscribed 19%. The qualified institutional buyers (QIBs) part is yet to be booked. The shareholder portion has been subscribed 68%, and the employee portion has been booked 24%.
NTPC Green Energy IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. Employees have been reserved equity shares aggregating up to 20 crore, and a discount of ₹5 per equity share is being offered to eligible employees.
Tentatively, NTPC Green Energy IPO basis of allotment of shares will be finalised on Monday, November 25 and the company will initiate refunds on Tuesday, November 26 while the shares will be credited to the demat account of allottees on the same day following refund. NTPC Green Energy share price is likely to be listed on BSE and NSE on Wednesday, November 27.
“NTPC Green Energy 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. We believe with a prudent business model and strong earnings growth with improved financials and return ratios, we recommend a Subscribe to the issue for the long term," the brokerage said.
