NTPC Green Energy IPO: ₹10,000 Crore Public Offer Set to Launch in November 2024, Aiming for Major Growth in Renewable Energy

The NTPC Green Energy IPO is one of the most anticipated public offers set to launch in November 2024. Here are the key details:

IPO Overview:

Issue Size: ₹10,000 crore (purely a fresh issue).
Listing: The shares will be listed on both BSE and NSE.
Price Band: The expected price range is ₹100-120 per share, subject to market conditions.
Market Competition: The IPO will compete with Adani Green Energy in the renewable energy space.
Use of Proceeds: The funds raised will be primarily used for investing in NTPC’s subsidiary NTPC Renewable Energy Limited (NREL), with ₹7,500 crore allocated for the repayment of borrowings and the rest for general corporate purposes.

Operations and Growth:

Current Capacity: NTPC Green Energy (NGEL) currently has 3.2 GW of operational capacity, consisting of 3.1 GW of solar and 100 MW of wind power.
Expansion Plans: The company aims to increase its renewable energy capacity to 60 GW by 2032, which represents a 44% compound annual growth rate (CAGR).
Renewable Energy Projects: NGEL is involved in large-scale solar and wind energy projects across India and is also focusing on hybrid projects that combine solar and wind energy for more stable power generation. Additionally, the company is exploring green hydrogen as a long-term renewable energy solution for storage and transport.

Financial Performance:

Revenue Growth: Revenue surged from ₹170.60 crore in FY 2023 to ₹2,028.69 crore in FY 2024, reflecting strong operational performance.
Profit Growth: Profit more than doubled, rising from ₹174.44 crore in FY 2023 to ₹370.47 crore in FY 2024.
Asset Growth: Total assets increased from ₹16,878.85 crore in FY 2023 to ₹18,321.83 crore in FY 2024, indicating substantial investment in renewable energy projects.

IPO Details:

Investor Categories: The IPO will be reserved for Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), Retail Individual Investors (RIIs), and employees.
Lead Managers: The lead managers for the offer include IDBI Capital Markets & Securities, HDFC Bank, IFL Securities, and Nuvama Wealth Management. The registrar is KFin Technologies.

Grey Market Premium (GMP):

The current GMP for the NTPC Green Energy IPO is ₹34 per share, indicating a positive market sentiment.

Summary:

NTPC Green Energy’s IPO represents a significant move for the company as it continues to transition towards clean energy. With substantial growth in revenue, profit, and assets, NGEL’s expansion in the solar and wind energy sectors, as well as its plans to ramp up to 60 GW by 2032, positions it as a key player in India’s renewable energy landscape.

Disclaimer: This information is for informational purposes only and does not constitute an offer or solicitation to buy or sell securities. The details provided are based on publicly available information and are subject to change. Please conduct thorough research and consult with a financial advisor before making any investment decisions.