The NTPC Green Energy IPO, valued at ₹10,000 crore, opened for subscription on November 19 and concludes today, November 22. The IPO has garnered strong interest, particularly among retail investors. The share allotment is expected to be finalized on Monday, November 25.
Subscription Status:
As of Day 3, the IPO has been subscribed 2.40 times, with bids received for 1,41,98,33,424 shares against the 59,31,67,575 shares available, according to BSE data. The retail investor segment recorded a subscription of 3.35 times, while qualified institutional buyers (QIBs) subscribed 3.32 times. Non-institutional investors (NIIs) subscribed 80%, and the shareholder and employee portions were booked 1.56 times and 78%, respectively.
IPO Structure:
The ₹10,000 crore issue consists entirely of new equity shares with no offer-for-sale (OFS) component. NTPC Green Energy, a ‘Maharatna’ central public sector enterprise, focuses on renewable energy, managing solar and wind power projects across more than six states.
Key Highlights:
- Portfolio: As of September 30, 2024, NTPC Green Energy’s portfolio includes 16,896 MW, comprising 3,320 MW operational capacity and 13,576 MW contracted and awarded projects. It has an additional 9,175 MW in the pipeline, totaling 26,071 MW across 41 solar and 11 wind projects.
- Client Base: The company has long-term agreements with 17 offtakers, primarily government agencies and public utilities, ensuring stable revenue through Power Purchase Agreements (PPAs) with an average tenure of 25 years.
Analyst Insights:
Rajan Shinde, Research Analyst at Mehta Equities Ltd, noted that NTPC Green Energy presents an opportunity to invest in a key player within India’s renewable energy sector. The company’s diversified presence, long-term PPAs, and growth in green hydrogen, chemicals, and battery storage strengthen its market position. However, at the upper price band of ₹108, the IPO appears aggressively priced with a PB ratio of 4.96x and PE ratio of 259.56x. Analysts recommend the IPO for risk-tolerant investors seeking long-term growth opportunities.
