The NTPC Green Energy IPO, valued at an estimated ₹10,000 crore, is one of 2024’s most highly anticipated public offerings. Supported by NTPC, India’s leading power producer, NTPC Green Energy aims to make a mark in the renewable energy sector, competing with established players like Adani Green Energy and Renew Power. Here’s a rundown of key details:
Company Profile and Market Position
NTPC Green Energy stands among the top 10 renewable energy companies in India based on operational capacity. As of June 30, 2024, it has the third-largest contracted capacity of 15 GW, following Renew Power’s 16 GW and Adani Green Energy’s 27 GW. Notably, NTPC Green is India’s largest public sector enterprise in renewable energy (excluding hydropower) in terms of both capacity and generation, as reported for fiscal 2024.
IPO Details and Timeline
- Expected Launch: The IPO is projected to open by mid-November, with November 18, 2024, as a likely start date. The Red Herring Prospectus (RHP) is anticipated to be filed on November 11, 2024.
- Shareholder Eligibility: NTPC shareholders on record by November 8, 2024, will qualify under a reserved shareholder quota, allowing NTPC investors to participate in a separate allocation category within the IPO.
- Price Range: Brokerage ICICI Direct has indicated a price band between ₹100-120 per share, subject to prevailing market conditions.
Use of IPO Proceeds
Proceeds from the IPO will primarily fund NTPC’s subsidiary, NTPC Renewable Energy Limited (NREL), with ₹7,500 crore allocated for repayment and prepayment of existing loans. The remaining funds will support general corporate expenses and other strategic initiatives.
Lead Managers and Logistics
The IPO’s book-running lead managers include IDBI Capital Markets & Securities, HDFC Bank, IFL Securities, and Nuvama Wealth Management, with KFinTechnologies acting as the registrar. Following the IPO, NTPC Green Energy will list its shares on the BSE and NSE.
Grey Market Premium (GMP)
The IPO’s current grey market premium (GMP) is ₹34 per share, which reflects strong early interest and suggests potential gains upon listing.
Strategic Vision
As the primary vehicle for NTPC’s green initiatives, NTPC Green Energy is poised to drive the company’s renewable capacity to 60 GW by FY32. The company has adopted both organic and inorganic growth strategies, including capacity additions; it plans to add 3 GW of capacity in FY25, with 0.4 GW added in the first half of the fiscal year.
This IPO is expected to reinforce NTPC Green Energy’s standing in India’s renewable sector, supporting its ambitious expansion goals while benefiting from NTPC’s strong industry presence and experience in large-scale project execution.
Disclaimer: This information is for general knowledge only and does not constitute financial advice. Investors are advised to read the official Red Herring Prospectus (RHP) and consult financial advisors before investing. Market conditions and other factors may affect IPO performance.
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