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PremiumNTPC Green Energy Share Price Highlights: NTPC Green Energy share price made a lukewarm debut on the bourses today, Wednesday, November 27. The stock ended listing day at ₹121.25 on NSE, a 12.27% premium to the IPO price of ₹108, and at ₹122.10 on BSE, a 13.06% premium.
NTPC Green Energy shares debuted on the stock exchange today, November 27, at 10:00 AM IST. After a successful initial public offering (IPO) that ran from November 19 to November 22, this marked an important step in the company's journey toward promoting sustainable energy solutions.
On NSE, NTPC Green share price opened at ₹111.50 per share, 3.24% higher than the issue price of ₹108. On BSE, NTPC Green share price today opened at ₹111.60 apiece, up 3.33% than the issue price.
Arun Kejriwal, founder of Kejriwal Research and Investment Services, said that NTPC Green Energy's listing has exceeded all expectations, with the share hitting the upper circuit and gaining 10% over the listing price of ₹111.50. This performance has provided substantial returns to investors, especially retail investors who were particularly enthusiastic about the stock.
The initial public offering (IPO) of NTPC Green Energy Ltd, the renewable energy subsidiary of NTPC, saw strong interest, subscribing 2.40 times by the close of the share sale on Friday. Retail individual investors (RIIs) played a significant role, with their portion subscribing 3.39 times. Qualified institutional buyers (QIBs) also showed robust demand, with a subscription rate of 3.32 times. However, the non-institutional investors segment was slightly lower, achieving a subscription of 81 percent. This positive response reflects the growing interest in renewable energy investments.
NTPC Green Energy is poised to make a noteworthy entry into the market with its upcoming initial share sale, aiming to raise ₹10,000 crore through a fresh issuance of equity shares. Notably, this offering does not feature any offer-for-sale (OFS) component.
With a price band set between ₹102 and ₹108, this share sale is positioned to attract a diverse group of investors. As a 'Maharatna' central public sector enterprise, NTPC Green Energy is at the forefront of the renewable energy sector, with a robust portfolio that includes both solar and wind power assets.
NTPC Green Energy share price ended listing day at ₹121.25 on NSE, a 12.27% premium to the IPO price of ₹108, and at ₹122.10 on BSE, a 13.06% premium.
The Company proposes to utilise the Net Proceeds towards funding the following objects:
Investment in wholly owned Subsidiary, NTPC Renewable Energy Limited (NREL) for repayment/ prepayment, in full or in part of certain outstanding borrowings availed by NREL; and
General corporate purposes.
· There is a concentrated pool of utilities and power purchasers for electricity generated by its plants and projects.
· Company’s business and profitability is substantially dependent on the availability and cost of solar modules, solar cells, wind turbine generators and other materials, components and equipment for its solar, wind and other projects. It is dependent on third party suppliers for meeting its materials, component and equipment requirements.
· Company’s renewable energy project construction activities may be subject to cost overruns or delays which may adversely affect its business, results of operations, financial condition and cash flows.
· In the six months period ended September 30, 2024 and in Fiscal 2024, 62.20% and 61.74%, respectively, of its operating renewable energy projects are concentrated in Rajasthan. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in Rajasthan could have an adverse effect on business, results of operations and financial condition.
According to experts, the company is valued at 15x FY27 EV/EBITDA at the upper price band of ₹108 per share, based on assumption 19GW operational capacity and ₹12,000cr EBITDA. While short-term gains may be muted, the valuation does not account for potential growth in green hydrogen, energy storage and other such initiatives that the company intends to develop as energy solution company.
The company's 26,071 MW renewable energy portfolio as of Sep’24 includes 3,320 MW operational, 13,576 MW contracted, and 9,175 MW in the pipeline, spread across six states to reduce locationspecific risks. With ~8,900 acres of freehold and ~45,700 acres of leasehold land, it is wellpositioned to achieve 19 GW capacity.
NTPC Green Energy Ltd (NGEL), a subsidiary of NTPC Ltd, is the largest renewable energy public sector enterprise (excluding hydro) by operating capacity (3,320 MW) as of Sep’24 and power generation as of Mar’24. Its portfolio includes solar and wind projects across six states with a 25-year average PPA. As of Sep’24, NGEL has 13,576 MW of contracted and awarded projects and 9,175 MW in the pipeline. The company aims to reach 60 GW of RE capacity by FY32.
The President of India, operating through the Government of India's Ministry of Power and NTPC Limited, are the company's promoters.
The stock was trading at ₹122.65 per share on NSE, marking a 10% increase at 13:26 IST, and at ₹122.75 per share on BSE, showing a nearly 9.99% higher.
Arun Kejriwal, the founder of Kejriwal Research and Investment Services, explained that if there is a frenzy in today's buying, driven by certain influential names, it's unclear whether this could lead to a stock that is truly worth buying. We should introduce some skepticism. However, the fundamentals do not support such a price increase, as the stock is fundamentally expensive. When considering price-to-book ratios and EV/EBITDA, it's clear that this share is overpriced. Nevertheless, solar energy is currently a buzzword in the market.
Arun Kejriwal, founder of Kejriwal Research and Investment Services, said that there would be very few people who did not get allotment, while a large number of people would have. So the final number of retail investors was 13,59,000 applications were valid, and 2, 93,000 have been allotted shares. So, it's a little over 22%. So large numbers of investors have not received shares. You should allow the share price to stabilise for a number of days before deciding, as on the fundamentals, the share is not cheap.
Arun Kejriwal, founder of Kejriwal Research and Investment Services, said that NTPC Green Energy's listing has exceeded all expectations, with the share hitting the upper circuit and gaining 10% over the listing price of ₹111.50. This performance has provided substantial returns to investors, especially retail investors who were particularly enthusiastic about the stock.
The company has ambitious plans for growth, but the real challenge lies in execution, as these projects can be time-consuming and don't materialize overnight. Successfully delivering on these projects will be crucial for the company's future. With the recent listing, NTPC Green Energy now has sufficient funds available, as this dilution represents around 11-12% of the company's equity.
“Market expected the stock to show muted gains at listing, the stock listed at a 3.3% premium. Unexpectedly, the stock rallied strongly and is currently trading at Rs. 120 (+11.34%). We would advise people who invested for short term gains to exit and book profits," said Gaurav Garg.
The stock was trading at ₹120.90 per share on NSE, marking a 8.43% increase at 11:49 IST, and at ₹120.85 per share on BSE, showing a nearly 8.29% higher.
Given its strategic development and solid financial growth, the company is well-positioned to capitalize on growth opportunities in the renewable energy sector. We suggest that investors who have been allotted shares consider maintaining their positions with a medium to long-term outlook.
“Based on the company's fundamentals and the green energy sector's prospects, I recommend investors who have secured allotments to hold positions for at least 2 years. Meanwhile, those without allotments may consider exploring opportunities in the secondary market. However, they must enter this energy stock with a long-term view, as short-term results could be disappointing. My analysis suggests that investors with a 3 to 6-year investment horizon could target a price range between ₹250 and ₹600," said VLA Ambala.
The stock was trading at ₹121.25 per share on NSE, marking a 8.74% increase at 10:37 IST, and at ₹121.30 per share on BSE, showing a nearly 8.69% higher.
NTPC Green Energy made a positive debut, listing at ₹111.5, a 3.25% gain over its issue price of ₹108. The listing surpassed modest expectations, supported by slightly improved market sentiment. The IPO had received a moderate overall subscription of 2.55 times, reflecting measured investor interest.
Despite the aggressive pricing based on the PE ratio, the company's long-term prospects in the renewable energy space make it a suitable option for patient investors with a long-term horizon and we recommend to hold it with a stop loss at around 110.
"As expected NTPC Green Energy listing was in line with flat debut. Valuations and subdued market mood justifies the listing. For long term investors, we believe NTPC Green Energy Ltd is a great opportunity to invest in a leading player of India’s renewable energy sector, backed by the formidable resources and expertise of NTPC Ltd as a Long term strategy only.
Considering all the parameters, allotted investors should consider to HOLD IT FOR LONG TERM despite knowing short term volatility in the markets. For non-allotted investors, we advise to accumulate if the listing is around the issue price or even below," said Prashanth Tapse, Sr VP Research – Research Analyst, Mehta Equities Ltd.
NTPC Green Energy share price made a lukewarm debut on the bourses today. On NSE, NTPC Green share price opened at ₹111.50 per share, 3.24% higher than the issue price of ₹108. On BSE, NTPC Green share price today opened at ₹111.60 apiece, up 3.33% than the issue price.
Despite the prevailing sell-off mood in the market and high valuations, NTPC Green Energy, a leading player in India’s renewable energy sector, experienced strong demand from non-institutional investors (NIIs) and retail investors, although NIIs exhibited less enthusiasm. We believe that investing in the NTPC Green Energy Ltd IPO represents a significant opportunity to engage with a key player in India’s renewable energy sector, especially considering its backing by the robust resources and expertise of NTPC Ltd, but we recommend viewing it as a long-term strategy.
With ambitious renewable energy targets, the company is well-positioned to take advantage of the growing demand for sustainable energy solutions. In addition, NTPC Green's strategic expansion into green hydrogen, green chemicals, and battery storage further enhances its growth prospects, placing it at the forefront of India’s energy transition.
State-owned NTPC announced on Tuesday the establishment of a 50:50 joint venture with Maharashtra State Power Generation Company Ltd. The collaboration has led to the formation of MAHAGENCO NTPC GREEN ENERGY PRIVATE LIMITED (MNGEPL), which aims to develop, operate, and maintain renewable energy parks across Maharashtra. This initiative is a significant step towards enhancing the region's renewable energy capabilities and promoting sustainable development.
NTPC Green Energy IPO, which is estimated at ₹10,000 crore, includes only newly issued equity shares, with no element of Offer For Sale (OFS).
The funds raised from this new issuance, amounting to ₹7,500 crore, will be allocated for investments in NTPC Renewable Energy Limited (NREL), for repaying or prepaying certain existing debts linked to NREL, and for general corporate purposes.
"Market sentiment surrounding the NTPC Green Energy IPO suggests a neutral to flat listing for the stock, primarily due to its massive INR 10,000 crore size. The current conditions indicate that the stock could debut with a modest gain of approximately 1.85% per share," said VLA Amabala, a SEBI-registered research analyst and Co-founder of Stock Market Today
“Considering all the parameters along with decent subscription demand and followed by market sentiments, the stock can list on neutral to flat gain 0-5% range on its issue price. Allotted investors should not expect any big listing gains due to market scenario. While long term investors should consider the company to HOLD IT FOR LONG TERM despite knowing short term volatility in the markets and competitive pressures in the sector. For non-allotted investors, we advise to accumulate if the listing is around the issue price," said Tapse.
According to the BSE notice, Trading Members of the Exchange are informed that, effective Wednesday, November 27, 2024, the equity shares of NTPC Green Energy Limited will be listed and admitted for trading on the Exchange as part of the 'B' Group of Securities.
NTPC Green Energy IPO GMP today is +1. This indicates NTPC Green Energy share price was trading at a premium of ₹1 in the grey market, according to investorgain.com.
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 share price is indicated at ₹109 apiece, which is 0.93% higher than the IPO price of ₹108.
Recent analysis of the last 24 sessions of grey market activities shows that the current Grey Market Premium (GMP) stands at ₹1, which indicates a worrying trend toward lower values. With the GMP fluctuating between a low of ₹0 and a high of ₹25, as highlighted by experts at investorgain.com
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
