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NTPC Green Energy IPO: A snapshot of peer-to-peer comparison in the renewable sector
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5 min read | Updated on November 15, 2024, 09:17 IST
SUMMARY
NTPC Green Energy’s upcoming IPO aims to raise ₹10,000 crore for growth in renewable energy. With plans to reach 60 GW by FY32, the company’s performance is compared to competitors like Adani Green and ReNew Energy.
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NTPC Green Energy IPO: A snapshot of peer-to-peer comparison in the renewable sector
The upcoming NTPC Green Energy IPO is set to be the third-largest IPO of 2024 with issue size of ₹10,000 crore.
NTPC Green Energy is a wholly-owned subsidiary of NTPC Limited, one of India’s largest energy-generating companies. NTPC Green Energy focuses on renewable energy projects, pursuing them through both organic growth and acquisitions.
The company plans to raise ₹10,000 crore from the market. The funds will be used for investment in its subsidiary, NTPC Renewable Energy Limited (NREL), to repay or prepay some of NREL’s outstanding loans and for general business purposes. The IPO will be open from November 19 to November 22, 2024, with a price band of ₹102 to ₹108 per share. The tentative listing date is November 27, 2024, and the IPO will include a 10% quota for existing shareholders of the parent company NTPC Ltd.
Peer-to-peer comparison in the renewable sector
NTPC Green Energy faces intense competition among its peers in the renewable energy sector. Some of the key competitors across business verticals include Adani Green (Adani Group), Greenko (Greenko Group), Acme Solar Holdings (ACME Group), JSW Neo (JSW), Tata Power REL (Tata Power). As per the RHP, the company has listed Adani Green Energy as its listed peers.
Closest listed peers of NTPC Green Energy
| Stocks | Market cap (₹ crore) | Stock price | P/E | ROE | Debt to Equity |
|---|---|---|---|---|---|
| Adani Green Energy | 2,36,280 | ₹1,492 | 183 | 16.81% | 3.31 |
| ACME Solar Holdings | 15,266 | ₹253 | 124 | 26.94% | 0.83 |
| Tata Power Company | 1,29,668 | ₹406 | 34.2 | 13.23% | 1.53 |
Adani Green Energy
Renew Energy Global
ReNew Energy Global Plc, along with its subsidiaries, generates power in India using renewable sources. The company operates in Wind Power, Solar Power, Hydro Power, and Transmission Line segments. It develops and owns utility-scale wind, solar, and firm power projects. In FY24, it reported a consolidated revenue of ₹9,653 crore and an operating EBITDA of ₹5,864 crore. As the company is listed on the NASDAQ exchange the financial parameters may not be excactly comparable.
ACME Solar Holdings
Tata Power Company
FY24 financial summary
| Stocks | Operating income (₹ crore) | Revenue growth (%) | Operating profit margin (%) | ROCE(%) |
|---|---|---|---|---|
| NTPC Green Energy | 1,746 | 1,057%* | 89% | - |
| Adani Green Energy | 7,586 | 19% | 82% | 10% |
| Renew Energy Global | 5,864 | 3% | 72% | 7% |
| ACME Solar Holdings | 1,173 | 2% | 83% | 8% |
| Tata Power Company | 10,784 | 12% | 18% | 11% |
*In FY23, there were only 31 days of operation.
Leading project developers
| Parameter | NTPC GEL | Adani Green Energy | Renew | Greenko | ACME Solar Holding | JSW Neo | TATA Power REL |
|---|---|---|---|---|---|---|---|
| Years in Business (As on 30/09/2024) | ~3 Yrs | ~10 Yrs | ~14 Yrs | ~22 Yrs | ~16 Yrs | ~3 Yrs | ~17 Yrs |
| Operational capacity (GW) as on 30/09/2024 | Solar: 3.34 Wind: 0.21 (Incl. NTPC and NTPC REL) | Solar: 7.4 Wind: 1.7 WSH: 2.1 | Solar: 4.0 Wind: 4.3 | Solar: 2.175 Wind: 3.192 | Solar: 1.34 Wind: 2.0 | Solar: 0.7 Wind: 1.0 | Solar: 3.7 Wind: 1.0 |
| Under construction/ Development capacity (GW) as on 30/09/2024 | under-construction: 8.13 Pipeline: 10.57 | Solar: 16.8 Wind: 2.4 WSH: 2.7 | Solar: 3.3 Wind: 1.8 | Solar: 1.0 Wind: 0.4 | Solar: 1.8 Wind: 0.15 Hybrid 0.83 FDRE 1.25 | Wind: 1.7 Solar: 3.2 (pipeline) Hybrid/FDRE: 2.3 (pipeline) | Solar: 1.0 Hybrid: 4.5 |
Conclusion
NTPC Green Energy is set for major growth in renewable energy, aiming to reach 60 GW by FY32 across solar, wind, and storage projects. In the first half of FY25, it added 485 MW of renewable capacity, bringing its total standalone commercial capacity to 59,168 MW. The company has also signed important agreements for 25 GW of renewable projects and 1 million metric tons per year of green hydrogen production in Rajasthan.
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