NTPC Green Energy Limited made its highly anticipated debut on November 27, 2024, with its shares listing at ₹111.50 on the NSE, a 3.2% premium over the issue price of ₹108. On the BSE, the shares opened slightly higher at ₹111.60, marking a modest yet optimistic start for the green energy company.
The ₹10,000 crore IPO saw substantial interest, closing 2.55 times oversubscribed. Retail investors, in particular, showed strong confidence, with their segment subscribed 3.59 times. However, the non-institutional investors (NII) segment was less enthusiastic, subscribing to only 0.85 times the reserved portion.
Subscription Breakdown
| Category | Subscription Rate |
|---|---|
| Retail Investors | 3.59x |
| Qualified Institutional Buyers (QIBs) | 3.51x |
| Non-Institutional Investors (NIIs) | 0.85x |
| Employees & Others | 1.67x |
| Total | 2.55x |
Key Highlights of NTPC Green IPO
- Pricing and Lot Size:
- Shares were priced between ₹102 and ₹108.
- Retail investors could apply for a minimum lot of 138 shares, requiring an investment of ₹14,904.
- Fund Allocation:
- Proceeds will be directed toward investments in NTPC Renewable Energy Limited (NREL) for loan repayments.
- A portion will also be reserved for general corporate purposes.
- Employee Benefits:
- Employees received a ₹5 discount per share, making the offering even more attractive.
Growth Potential and Future Plans
NTPC Green Energy is well-positioned to capitalize on India’s ambitious renewable energy targets. With an operational capacity of 3,320 MW, the company plans to expand to 19 GW by FY27. Its diverse portfolio includes solar and wind energy projects across six states, securing long-term Power Purchase Agreements (PPAs) with Indian government agencies and utilities.
In the fiscal year ending March 31, 2024, NTPC Green Energy reported a 1,094.19% increase in revenue and a 101.32% rise in profit after tax. This significant growth underscores its potential as a leader in the renewable energy sector.
Expert Opinions and Broker Recommendations
Several brokerage firms have expressed optimism about NTPC Green Energy’s long-term prospects:
- Reliance Securities: Commended the company’s financial health and focus on green hydrogen, recommending the IPO as a long-term investment.
- SBI Securities: Highlighted an expected CAGR of 79% for revenue and a 123.8% growth in profit, making it an attractive buy.
- Swastika Investmart: Praised the company’s diversified portfolio but cautioned about short-term profitability challenges.
Why Invest in NTPC Green Energy?
- Renewable Energy Focus: The company aligns with India’s net-zero goals, offering a robust growth trajectory.
- Strong Financial Performance: Impressive revenue and profit growth reflect its operational efficiency.
- Expert Backing: Leading brokerages are bullish on its long-term prospects.
Challenges to Consider
While NTPC Green Energy shows immense potential, short-term profitability fluctuations and aggressive pricing may pose challenges. Investors are advised to assess their risk tolerance before making a commitment.
Conclusion
NTPC Green Energy’s IPO debut marks the beginning of a promising journey in India’s renewable energy sector. With a strategic focus on sustainable energy and a proven track record of growth, the company stands out as a compelling investment. As India intensifies its efforts toward achieving net-zero emissions, NTPC Green Energy is poised to play a crucial role in shaping the nation’s renewable future.
Disclaimer: This article is for informational purposes only. Investors are advised to conduct their research or consult financial advisors before making investment decisions.
