NTPC Green Energy IPO Set for November Launch: ₹10,000 Crore Issue to Boost NTPC’s Renewable Ambitions

The NTPC Green Energy Limited (NGEL) IPO is anticipated to hit the market in Q3 FY25, likely around November 2024. This IPO is expected to significantly enhance NTPC’s standing in the renewable energy sector, adding value to the parent company, Maharatna PSU. Brokerage firms have suggested buying NTPC stock ahead of the IPO, as NGEL’s growth in renewables aligns with NTPC’s overall strategy to capitalize on rising power demand in India.

Key Highlights of NTPC Green Energy IPO

1. IPO Size and Structure: The NGEL IPO is valued at ₹10,000 crore and will be a fresh issue. The proceeds are primarily aimed at investing in NTPC Renewable Energy Limited (NREL), which will use about ₹7,500 crore for debt repayment, while the remainder will cover general corporate purposes.
2. Expected Timeline: The IPO’s final launch date, price band, and details for anchor investors are expected to be announced soon. The IPO draft prospectus was filed with SEBI on September 18, 2024.
3. Grey Market Premium (GMP): The latest GMP was reported at ₹34 per share, indicating healthy demand and positive investor sentiment.
4. Price Band: Market sources suggest the IPO price band will range between ₹100-₹120 per share, though it may be fine-tuned based on prevailing market conditions.
5. Listing: The shares are set to be listed on the BSE and NSE, providing wide access for investors.
6. Investment Use: The bulk of the funds will reduce outstanding borrowings for NREL, positioning NTPC Green Energy to continue its aggressive growth in renewables.
7. Brokerage Views on NTPC Stock: Antique Stock Broking recommends a “BUY” for NTPC, citing a revised target price of ₹477 for FY27. This valuation is based on NTPC’s robust expansion strategy, which includes 11.2 GW of thermal capacity under construction and around 12 GW in renewable projects. NTPC aims to increase its renewable capacity by 103% in FY25, 84% in FY26, and 73% in FY27.
8. Capacity Expansion Goals: NGEL, as NTPC’s flagship green energy arm, is set to drive the parent company’s shift toward sustainable energy, aiming to reach 60 GW in renewable capacity by FY32. In FY25 alone, NTPC Green Energy expects to add 3 GW to its renewable portfolio.

Summary

The NTPC Green Energy IPO presents a pivotal opportunity for investors as NTPC accelerates its renewable energy capacity, meeting India’s growing power needs. With strong backing from NTPC and high investor interest in sustainable energy, this IPO is positioned to be a cornerstone in NTPC’s ambitious green energy transformation.

Disclaimer: This information is for general knowledge and does not constitute financial advice. Please consult a financial advisor before making any investment decisions. The details provided, including IPO dates, price band, and other specifics, are subject to change based on regulatory approvals and market conditions.