NTPC Green Energy Limited (NGEL) is about to launch its initial public offering (IPO), generating strong interest among investors. Here’s an in-depth look into NTPC Green Energy IPO GMP, key subscription details, business overview, financials, allotment, and more.
NTPC Green Energy IPO Details
The NTPC Green Energy IPO is structured to raise ₹10,000 crore through a fresh issue of shares. This new IPO is priced between ₹102 and ₹108 per share, making it accessible to both retail and institutional investors. The subscription period for the NTPC Green Energy IPO is scheduled to begin on November 19, 2024, and will close on November 22, 2024.
| IPO Details | Key Information |
|---|---|
| Issue Size | ₹10,000 crore |
| Price Band | ₹102 – ₹108 per share |
| Subscription Dates | Nov 19 – Nov 22, 2024 |
| Listing Date | Nov 27, 2024 |
This new issuance does not include an offer-for-sale component, keeping the focus on raising fresh capital.
Subscription Breakdown of NTPC Green Energy IPO
The allocation in the NTPC Green Energy IPO is organized to cater to different investor categories:
- Qualified Institutional Buyers (QIBs): 75% of the issue.
- Non-Institutional Investors (NIIs): 15% of the issue.
- Retail Investors: 10% reserved for individual investors.
- Special Quota for NTPC Shareholders: ₹1,000 crore is allocated to existing NTPC shareholders, who may apply without any specific discount.
The minimum lot size is set at 138 shares, costing around ₹14,904 at the upper end of the price range. Retail investors can apply for up to 13 lots.
NTPC Green Energy IPO GMP Today
The grey market premium (GMP) for NTPC Green Energy IPO has fluctuated significantly in recent weeks, with the latest GMP ranging between ₹3.50 per share. This suggests a potential listing gain for investors. The GMP, often reflecting market interest and sentiment toward an IPO, shows optimism for NTPC Green Energy’s role in the renewable sector.
The NTPC Green Energy IPO GMP trend could continue to evolve as the subscription dates draw closer. A positive GMP often translates to good listing day potential, but investors are advised to analyze the overall fundamentals.
Business Overview of NTPC Green Energy Limited
NTPC Green Energy Limited, a wholly-owned subsidiary of NTPC Limited, was created to focus solely on renewable energy initiatives, including solar and wind power. As of August 31, 2024, the company’s operational capacity stands at approximately 3,171 MW, primarily from solar projects.
| Project Details | Capacity (MW) |
|---|---|
| Solar Projects | 3,071 MW |
| Wind Projects | 100 MW |
| Target Capacity by FY32 | 60,000 MW |
The company’s goal to achieve 60 GW of renewable capacity by 2032 aligns with NTPC’s vision to have 45% of its power generated from renewable sources. NTPC Green Energy IPO GMP reflects growing confidence in the company’s ambitious expansion plans and its role in India’s renewable energy future.
Financial Performance of NTPC Green Energy
NTPC Green Energy Limited has shown substantial financial growth in recent years, supported by its expanding project portfolio. Between FY22 and FY24, NTPC Green Energy’s revenue grew at a compound annual growth rate (CAGR) of over 29%, and profits surged by 53.7%.
| Financial Year | Revenue (₹ million) | Profit (₹ million) | Total Assets (₹ million) |
|---|---|---|---|
| FY 2022 | 9,104.21 | 947.42 | 16,878.85 |
| FY 2023 | 14,497.09 | 4,564.88 | 18,321.83 |
| FY 2024 | 19,625.98 | 3,447.21 | – |
The financial metrics underscore NTPC Green Energy’s resilience and growth potential in the competitive renewable sector. Solar power sales contributed to 93% of the revenue, highlighting the focus on this segment.
Review of NTPC Green Energy IPO
NTPC Green Energy IPO GMP, along with its financial fundamentals, has created anticipation around this offering. Here are some pros and cons to consider:
Strengths
- Strong Parentage: As a subsidiary of NTPC, NTPC Green Energy has substantial financial and operational backing.
- Growth Potential: India’s renewable energy sector is growing rapidly, with NTPC Green Energy poised for long-term growth through new projects.
Risks
- Sector Challenges: The renewable energy sector faces regulatory challenges and high capital requirements, which may impact the company’s performance.
- Market Volatility: NTPC Green Energy IPO GMP may be affected by general market trends, impacting its stock performance post-listing.
Allotment and Key Dates for NTPC Green Energy IPO
The allotment and listing process for the NTPC Green Energy IPO is outlined below for investors’ convenience:
| Event | Date |
|---|---|
| Subscription Period | Nov 19 – Nov 22, 2024 |
| Allotment Date | Nov 25, 2024 |
| Shares Credited | Nov 26, 2024 |
| Listing Date | Nov 27, 2024 |
Successful applicants will see shares credited to their demat accounts by November 26, with the official stock exchange listing on November 27.
FAQs About NTPC Green Energy IPO GMP
1. What is the NTPC Green Energy IPO size?
The NTPC Green Energy IPO size is set at ₹10,000 crore, raising capital through a fresh issue of shares.
2. How is NTPC Green Energy IPO GMP performing today?
The current NTPC Green Energy IPO GMP is between ₹3.50 per share, suggesting a positive outlook for the IPO listing.
3. What is the price band for NTPC Green Energy IPO?
The price band for NTPC Green Energy IPO is set at ₹102 to ₹108 per share.
4. When will the NTPC Green Energy IPO be listed?
The IPO is expected to list on November 27, 2024, on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
5. What are the primary uses of IPO proceeds?
The IPO proceeds will be utilized for debt repayment of NTPC’s subsidiary NTPC Renewable Energy Limited, and general corporate purposes.
Final Words
NTPC Green Energy IPO, supported by a promising NTPC Green Energy IPO GMP, provides an attractive opportunity for investors keen on renewable energy. The structured investment plan, shareholder quota, and favorable allocation for retail investors make this a promising IPO to watch. Investors, however, are encouraged to stay informed on the NTPC Green Energy IPO GMP and market sentiment before applying.
