NTPC Green Energy Ltd is preparing to launch its initial public offering (IPO) on November 19, 2024, with plans to raise up to ₹10,000 crores through the issuance of equity shares priced between ₹102 and ₹108 each. As a wholly-owned subsidiary of NTPC Ltd, the company focuses on renewable energy projects, boasting an operational capacity of 3,071 MW from solar and 100 MW from wind as of August 2024. This IPO aims to enhance NTPC’s renewable energy portfolio and support its goal of achieving 60 GW of renewable capacity by FY32. The proceeds will be utilized for investments in NTPC Renewable Energy and for general corporate purposes.
₹5
₹108
₹111.50
Expert Opinions
Market sentiment for the NTPC Green Energy IPO is robust, reflecting strong investor interest in the renewable energy sector, particularly following the success of recent IPOs like Waaree Energies. Company strengths include its backing by NTPC Ltd, a leading power generation company, and a substantial operational capacity of 3,071 MW from solar and 100 MW from wind projects. However, there are risks and challenges, such as regulatory changes and potential delays in project execution that could impact growth.
The valuation analysis indicates a target of approximately $12 billion, which aligns with industry expectations for significant growth in renewables. From a long-term investment perspective, NTPC Green Energy is positioned to benefit from India’s ambitious renewable energy targets, making it a key player in the transition towards sustainable energy solutions while contributing to national energy security.
Investor Considerations
Investors considering the NTPC Green Energy IPO should evaluate several key factors. Company performance and fundamentals indicate a strong operational capacity of 3,071 MW from solar and 100 MW from wind, with a reported revenue of ₹2,037.66 crore for the financial year 2023-24. The sector outlook for renewable energy in India is highly favorable, driven by government initiatives to expand green energy capacity significantly.
The IPO valuation, targeting around ₹10,000 crores, reflects the company’s potential in a rapidly growing market. Growth prospects are promising, as NTPC Green aims to enhance its renewable portfolio to meet the ambitious target of achieving 60 GW of renewable capacity by FY32. However, investors should be aware of risk factors, including regulatory challenges and competition within the sector. A long-term investment horizon may be beneficial as NTPC Green Energy is positioned to play a crucial role in India’s transition to sustainable energy solutions.
| Date | GMP | Trend |
|---|---|---|
| 26 Nov 2024 10.45 | ₹5 | --- |
| 25 Nov 2024 11.05 | ₹5 | --- |
| 23 Nov 2024 11.17 | ₹5 | --- |
| 22 Nov 2024 15.47 | ₹5 | --- |
| 21 Nov 2024 10.48 | ₹5 | --- |
| 18 Nov 2024 11.12 | ₹5 | --- |
| 15 Nov 2024 11.28 | ₹5 | --- |
| 14 Nov 2024 12.47 | ₹5 | --- |
| 13 Nov 2024 11.15 | ₹5 | Down |
| 12 Nov 2024 10.28 | ₹10 | Down |
| 11 Nov 2024 11.34 | ₹20 | Down |
| 10 Nov 2024 12.29 | ₹30 | --- |
FAQs
The Grey Market Premium showed strong accuracy in predicting NTPC Green Energy’s listing performance. The GMP of ₹5 predicted a premium of 4.63% over the issue price, while the actual listing delivered a similar gain of 3.24%. With a minimal prediction error of 1.33%, the GMP effectively captured both the direction and magnitude of the listing gains, proving to be a reliable indicator in this case.
NTPC Green Energy IPO Current GMP is ₹5.
NTPC Green Energy IPO Expected Returns is 4.63%.
NTPC Green Energy IPO estimated listing price is ₹113.