Shareholder - NTPC Green Energy IPO

NTPC Green Energy IPO Details

NTPC Green Energy Limited IPO Date

According to the offer document filed by the company with the SEBI, the NTPC Green Energy IPO’s opening date – in other words, the NTPC Green Energy IPO launch date – is November 19. The NTPC Green Energy IPO closing date is November 22. After this, investors will be updated about the allotment status on November 25.

Investors who have been allotted shares can expect them to be credited to their demat account on November 26. The NTPC Green Energy IPO listing date is November 27. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE. 

NTPC Green Energy IPO Price Band

The IPO is a fresh issue. The NTPC Green Energy IPO price band is ₹102 to ₹108. Interested investors can choose a price within this band to apply for the IPO. 

The NTPC Green Energy IPO listing price will be discovered on the listing day on November 27. The listing price is the price at which a company’s shares debut on the stock exchanges.

NTPC Green Energy IPO Lot Size

The NTPC Green Energy IPO lot size is 138 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the NTPC Green Energy IPO issue size is approx. ₹10,000 crore. 

About NTPC Green Energy

Incorporated in 2022, NTPC Green Energy Limited is a wholly-owned subsidiary of NTPC Limited. It is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of 30 September 2024 and power generation in FY24. 

NTPC Green Energy, along with its parent company, NTPC Limited, has demonstrated a track record of developing, constructing and operating renewable power projects driven by experienced in-house management and procurement teams.

Its energy portfolio includes solar and wind power assets in multiple locations in more than six states. It has an operational capacity of 3,220 MW of solar projects and 100 MW of wind projects as of 30 September 2024. 

The company undertakes utility-scale renewable energy projects, as well as projects for public sector undertakings (PSUs) and Indian corporations. It has entered into long-term power purchase agreements (PPAs) or Letters of Award (LoAs) with central government agencies like the Solar Energy Corporation of India (SECI) or state government agencies or public utilities. It also offers operating and maintenance services. 

As of 30 September 2024, the company’s portfolio comprised 16,896 MWs, including 3,320 MWs of operating projects and 13,576 MWs of contracted and awarded projects. In addition, its capacity under pipeline, where a definitive agreement has yet to be signed, is 9,175 MWs. Hence, the overall capacity could stand at 26,071 MWs upon execution of ongoing projects. 

In FY24, the company generated 5,712.48 kWh million of electricity with a capacity utilisation factor of 23.86%. As of 30 September 2024, NTPC Green operates 17 solar projects and 2 wind projects to generate 3,242 kWh million electricity units. 

Moreover, the company has 17 offtakers across 41 solar projects and 11 wind projects. It has long-term PPAs with these power offtakers, which have an average term of 25 years.

Furthermore, as of 30 June 2024, NTPC Green Energy is in the process of constructing 31 renewable energy projects in seven states, consisting of 11,771 MW. It has also signed joint venture agreements to produce renewable power with Indian Oil Corporation Limited and three other PSUs. 

Between FY22 and FY24, it saw a CAGR rise of over 29% in its revenue from operations and 53.7% in its profit. Moreover, renewable energy is a growing industry as India aims to achieve about 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030, which could benefit the company. 

Now, NTPC Green Energy Limited is launching its initial public offer (IPO). The total IPO issue size is ₹10,000 crore, comprising entirely the fresh issue. Its shares will be listed on the NSE and BSE.

Company Name:  NTPC Green Energy Limited

Company Established On: 2022

Company Type: Private

CEO/MD:  Rajiv Gupta

Financial snapshot

NTPC Green Energy IPO Analysis

Strengths and opportunities

1. Enjoys the parentage of NTPC Limited, which has a legacy of around five decades. It is one of India’s largest power companies and has experience in operating and maintaining power stations efficiently and in acquiring land for large power projects throughout India.
2. Among the top 10 renewable energy players in India in terms of operational capacity as of 30 June 2024. 
3. Diversification across geographies and offtakers, as it has a large portfolio of utility-scale solar and wind energy projects, as well as projects for PSUs and Indian corporates.
4. Has long-term PPAs with government agencies and public utilities with an average term of 25 years. 
5. Growing revenues with strong credit ratings and operating EBITDA margins of 87%, 90%, and 88% in FY22, FY23, and FY24, respectively.
6. Established network of reputed vendors located in India and overseas as it purchases major components such as solar panels, inverters, wind turbines and some components of power evacuation systems directly from domestic and international manufacturers. 

Risks and threats

1. Concentrated pool of utilities and power purchasers for electricity generated by its plants and projects as it derived 45% of its revenue from operations from its largest offtaker in Q1 FY25.
2. Renewable energy project construction activities may be subject to cost overruns or delays, adversely affecting the company's business, finances, and future growth.
3. Operating renewable energy projects are concentrated in Rajasthan and exposed to risks such as social, political, economic, or seasonal disruption, natural calamities, or civil disruptions. 
4. Faces significant competition from both traditional and renewable energy companies.
5. The time gap between making significant upfront investments in its projects and receiving revenue could adversely affect its business and finances.
6. Unfavourable weather conditions could significantly impact its business prospects, as electricity generation from solar and wind sources depends heavily on suitable meteorological and climate conditions.
7. Restrictions on imports could adversely affect the company's business as it imports equipment like solar module cells and components of wind turbine generators from China.
8. Has incurred substantial indebtedness amassing to ₹15,276 crore as of 30 June 2024 and exposed to the risk of volatility in interest rates. 

How to apply for the NTPC Green Energy IPO?

If you are interested to invest in NTPC Green Energy IPO, following are the steps to apply:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘NTPC Green Energy IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app