NTPC Green Energy IPO Live: NGEL IPO subscribed 33% so far. Should you buy?

Increasing the capacity of NTPC Green Energy Ltd to 19 GW is among the key priorities for its parent company NTPC, its Chairman and Managing Director (CMD) Gurdeep Singh said on Tuesday.

NTPC Green Energy Ltd (NGEL), the renewable energy arm of power giant NTPC, launched its Rs 10,000 crore Initial Public Offering (IPO) on Tuesday, with a price band of Rs 102-108 per share.

The CMD also said the price band was moderated after detailed consultation, taking into account overall market sentiment.

Replying to a question related to his priorities for NGEL, Singh said the company’s capacity will be increased to 19 gigawatt (GW) by March 2027.

NGEL’s operational renewable energy portfolio includes 3,220 megawatt (MW) of solar project and 100 MW of wind projects across six states as of September 30, 2024.

For addition of new capacities “we will need Rs 1 lakh crore,” Singh said in an interaction with media persons.

The capacity will be increased in a phased manner. In the current fiscal, 6 GW will be made operational and 11 GW will be achieved in FY 2025-26 and by FY 2026-27, the entire 19 GW will be made operational.

He further said there is no issue related to availability of land for the planned capacity, besides Power Purchase Agreements (PPAs) have already been signed and EPC has been done.

The new projects will come up in states like Gujarat, Rajasthan, Maharashtra, Chhattisgarh, Andhra Pradesh, Telangana and Uttar Pradesh.

For solar, PPAs have been signed at a tariff of Rs 2.6 per unit and it will be in the range of Rs 3.24-3.6 per unit for wind.

The IPO of NGEL got subscribed 33 per cent on the first day of share sale on Tuesday.

The Rs 10,000-crore initial share sale is entirely a fresh issuance of equity shares with no Offer For Sale (OFS) component.

The issue, with a price band of Rs 102-108 per share. The initial share sale for public subscription will conclude on November 22.

Proceeds from the IPO to the tune of Rs 7,500 crore will be used to repay or prepay part or all of its subsidiary NTPC Renewable Energy Ltd’s (NREL) outstanding loans and a portion will be utilised for general corporate purposes.

Inputs from PTI

The Indian stock, currency, and commodities markets will remain closed on Wednesday due to assembly elections in Maharashtra.

Inputs from PTI

The first day of the ₹10,000 crore initial public offer (IPO) of NTPC Green Energy (NGEL) was subscribed at 0.33 times with the retail portion getting fully subscribed at 1.33 times.

NTPC Green Energy IPO has been subscribed 0.33 times or 33 per cent on day one, November 19, 2024. The NII portion has been subscribed 0.16 times, retail portion 1.33 times, employee portion 0.17 times, and reservation portion for shareholders 0.57 times. QIBs subscriptions were NIL.

​NTPC Green Energy​, the subsidiary of power producer NTPC Ltd, has set the price band for its ₹10,000 crore IPO in the range ₹102-108 a share. Ahead of its IPO, the company raised ₹3,960 crore via anchor book on Monday with ​LIC ​being the biggest investor worth ₹500 crore. It has finalised allocation of nearly 36.67 crore equity shares to anchor investors at a price of ₹108 per share.

“Out of the total allocation of 36.67 crore equity shares to the anchor investors, 14.53 crore shares were allocated to 16 domestic mutual funds through a total of 72 schemes,” NTPC Green Energy said in an exchange disclosure.

As per the exchange data filing, Life Insurance Corporation of India was allotted 12.63 per cent, New World Fund 5.29 per cent, Goldman Sachs India 5.70 per cent and Government of Singapore 5.31 per cent, among the top anchor investors.

The company aims to utilise ₹7,500 crore out of the net issue proceeds for repaying debt of its subsidiary NTPC Renewable Energy. Additionally, the funds will help the company repay or prepay outstanding borrowings and meet general corporate purposes.

KFin Technologies is the registrar and IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities and Nuvama Wealth Management are the book running lead managers to the issue.

The IPO will conclude on November 22, 2024.

Read full report here.

NTPC Green Energy IPO has been subscribed 0.31 times or 31 per cent as at 4 pm on day one, November 19, 2024. The NII portion has been subscribed 0.13 times, retail portion 1.27 times, employee portion 0.16 times, and reservation portion for shareholders 0.54 times. QIBs subscriptions were NIL at the time of writing. 

​​​​NTPC Green Energy​​​​, the subsidiary of power producer NTPC Ltd, has set the price band for its ₹10,000 crore IPO in the range ₹102-108 a share. Ahead of its IPO, the company raised ₹3,960 crore via anchor book on Monday with ​​​​LIC ​​​​being the biggest investor worth ₹500 crore. It has finalised allocation of nearly 36.67 crore equity shares to anchor investors at a price of ₹108 per share. 

“Out of the total allocation of 36.67 crore equity shares to the anchor investors, 14.53 crore shares were allocated to 16 domestic mutual funds through a total of 72 schemes,” NTPC Green Energy said in an exchange disclosure. 

As per the exchange data filing, Life Insurance Corporation of India was allotted 12.63 per cent, New World Fund 5.29 per cent, Goldman Sachs India 5.70 per cent and Government of Singapore 5.31 per cent, among the top anchor investors. 

The company aims to utilise ₹7,500 crore out of the net issue proceeds for repaying debt of its subsidiary NTPC Renewable Energy. Additionally, the funds will help the company repay or prepay outstanding borrowings and meet general corporate purposes.

KFin Technologies is the registrar and IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities and Nuvama Wealth Management are the book running lead managers to the issue.

The IPO will conclude on November 22, 2024.

NTPC Green Energy aims to utilise ₹7,500 crore out of the net issue proceeds for repaying debt of its subsidiary NTPC Renewable Energy. Additionally, the funds will help the company repay or prepay outstanding borrowings and meet general corporate purposes.

NTPC Green Energy IPO has been subscribed 0.30 times or 30 per cent as at 3.33 pm on day one, November 19, 2024. The NII portion has been subscribed 0.13 times, retail portion 1.24 times, employee portion 0.16 times, and the reservation portion for shareholders 0.52 times. QIBs subscriptions were NIL at the time of writing. 

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NTPC Green Energy: Should you subscribe to the IPO? - Read here

NTPC Green Energy raises ₹3,960 crore from anchor investors ahead of IPO - Read here

NTPC Green Energy IPO has been subscribed 0.29 times as at 3.15 pm on November 19, 2024. 

• NII: 0.12 times
• Retail: 1.21 times
• Employee portion: 0.16 times
• Reservation portion shareholder: 0.51 times
• QIB: NIL

Total: 0.29 times

NTPC Green Energy IPO has been subscribed 0.28 times as at 3 pm on November 19, 2024. 

• NII: 0.12 times
• Retail: 1.18 times
• Employee portion: 0.15 times
• Reservation portion shareholder: 0.50 times
• QIB: NIL

Total: 0.28 times 

The Initial Public Offering (IPO) of NTPC Green Energy Ltd (NGEL), a subsidiary of the Maharatna public sector enterprise NTPC Ltd, opened for subscription from today, Tuesday.

The IPO is offered, at a price band of Rs 102-108 per share, and subscription is open until Friday. The company plans to raise a total of Rs 10,000 crore and is scheduled to list on the stock exchanges on November 27.

Shareholders of NTPC can apply for the IPO under a special shareholder quota. Additionally, NTPC employees have a separate quota for applying.

The lot size for the IPO is 138 shares. The shares will be transferred to demat accounts on November 26.

NGEL aims to scale its operational renewable capacity to 19 GW by FY27, reflecting its commitment to India’s clean energy transition.

This IPO is part of NTPC Ltd’s broader strategy to achieve 60 GW of renewable energy capacity by 2032. NTPC currently contributes 24 per cent of India’s total power generation and views NGEL as a critical vehicle to drive its renewable energy ambitions.

As of September 2024, NGEL operates 3,220 MW of solar and 100 MW of wind power projects. The company has a robust pipeline with 13,576 MW of contracted and awarded projects and an additional 9,175 MW in development.

NGEL’s renewable projects span key states such as Rajasthan, Gujarat, Tamil Nadu, and Uttar Pradesh. This geographical diversification mitigates risks associated with location-specific generation variability, ensuring stable and reliable energy output.

With NTPC’s extensive experience in project development and execution, NGEL is well-positioned to deliver on its ambitious targets. The company’s ownership of 8,900 acres of freehold land and 45,700 acres of leasehold land further bolsters its foundation for future expansion.

Beyond conventional solar and wind energy, NGEL is exploring advanced solutions like green hydrogen, green chemicals, and battery energy storage systems. These initiatives align with India’s sustainability goals and position NGEL to tap into emerging opportunities in the global clean energy market.

NGEL benefits from NTPC’s strong financial backing, ensuring access to low-cost capital. This advantage is crucial for maintaining profitability in the capital-intensive renewable energy sector. The company’s operational efficiencies and strategic focus further enhance its market competitiveness.

At the upper price band of Rs 108 per share, NGEL is valued at an FY24 EV/EBITDA multiple of 53.4x. Analysts have expressed confidence in the company’s long-term growth potential and recommended for subscription for investors seeking sustainable and long term profitable opportunities.

Inputs from ANI

NTPC Green Energy, the subsidiary of power producer NTPC Ltd, has set the price band for its ₹10,000 crore IPO in the range ₹102-108 a share.

Anand Rathi assigns ‘subscribe for long-term’

“On valuation parse at the upper price band ₹ 108/-, the issue is asking a Market Cap of ₹ 910000 Mn and based on FY 2025e annualized earnings and fully diluted post IPO paid-up capital, the company is asking for a PB of 4.96x and PE of 259.56x which appears aggressively priced. But considering its current established capacities and future expanded capacities, this is a pure long term story. The company is well placed to capture the tailwind from capacity addition in renewables owing to its strong parentage (NTPC), low operating costs along with diversified capacity portfolio and access to lower cost of capital. Therefore we believe that this issue may be considered for its long term growth. Hence we give “ SUBSCRIBE for LONG TERM” rating to this IPO.”

NTPC Green Energy IPO has been subscribed 0.26 times as at 2.27 pm on November 19, 2024. 

• NII: 0.10 times
• Retail: 1.10 times
• Employee portion: 0.14 times
• Reservation portion shareholder: 0.45 times
• QIB: NIL

Total: 0.26 times 

State-owned NTPC on Monday said it has paid ₹2,424 crore as an interim dividend to its shareholders.

The company paid its first interim dividend of ₹2,424 crore for the financial year 2024-25 on November 18, representing 25 per cent of the company’s paid-up equity share capital, NTPC said in a statement.

NTPC CMD Gurdeep Singh, along with the Board of Directors of the company, presented the “payment advice of Rs 1,238.84 crore, representing the government’s share to the Minister of Power Manohar Lal, Power Secretary Pankaj Agarwal”, it added.

On October 24, the Board of Directors of NTPC approved the first interim dividend of ₹2.50 on the face value of shares of ₹10 each for the financial year 2024-25.

This marks the 32nd consecutive year that NTPC has distributed dividends to its shareholders.

Inputs from PTI

(BSE data)

NTPC Green Energy, the subsidiary of India’s largest power producer NTPC, will be incurring a capex of ₹1 lakh crore over the next three years to take its green energy capacity to 19 GW by March 2027, NTPC Chairman and Managing Director, Gurdeep Singh, said.

NTPC Green currently has a portfolio of 16,896 MW, of which 3320 MW are operational and 13,576 MW are contracted and awarded. It has an additional pipeline of 9.2 GW, where term-sheets have been signed with joint venture partners or offtakers.

Report by Janaki Krishnan of businessline | Click to read the full report

• NTPC Green Energy IPO: Ventura Securities says ‘subscribe’ - Read here
• NTPC Green IPO: Subscribe for the long-term, says SBI Sec - Read here
• SBI Securities recommend investors to subscribe to the issue at cut-off price for long term - Read here

• NTPC Green Energy gets SEBI nod for ₹10,000-crore IPO - Read here
• NTPC Green Energy sets IPO price band at ₹102-108 per share - Read here
• NTPC Green Energy to incur ₹1 lakh crore capex over next 3 years - Read here
• NTPC Green Energy: Should you subscribe to the IPO? - Read here
• NTPC Green Energy raises ₹3,960 crore from anchor investors ahead of IPO - Read here

NTPC Green Energy IPO has been subscribed 0.25 times as at 2 pm on November 19, 2024. 

• NII: 0.10 times
• Retail: 1.03 times
• Employee portion: 0.13 times
• Reservation portion shareholder: 0.42 times
• QIB: NIL

Total: 0.25 times 

The wholly-owned subsidiary of NTPC Ltd, NTPC Green Energy has declared the price band of the public issue at ₹102-108 apiece. 

NTPC Green Energy IPO has been subscribed 0.21 times as at 1.06 pm on November 19, 2024. 

• NII: 0.08 times
• Retail: 0.90 times
• Employee portion: 0.12 times
• Reservation portion shareholder: 0.37 times
• QIB: NIL

Total: 0.21 times

Anand Rathi assigns ‘subscribe for long-term’

“On valuation parse at the upper price band ₹ 108/-, the issue is asking a Market Cap of ₹ 910000 Mn and based on FY 2025e annualized earnings and fully diluted post IPO paid-up capital, the company is asking for a PB of 4.96x and PE of 259.56x which appears aggressively priced. But considering its current established capacities and future expanded capacities, this is a pure long term story. The company is well placed to capture the tailwind from capacity addition in renewables owing to its strong parentage (NTPC), low operating costs along with diversified capacity portfolio and access to lower cost of capital. Therefore we believe that this issue may be considered for its long term growth. Hence we give “ SUBSCRIBE for LONG TERM” rating to this IPO.”

Divyam Mour, Research Analyst, SAMCO Securities, said, “As a subsidiary of NTPC operating in a high-growth segment, the company demonstrates significant future potential, leveraging NTPC’s extensive experience in the sector. A peer comparison of key fundamentals presents a favorable image, with the company outperforming its peers in revenue growth, profit margins, and leverage ratios. However, its capacity utilization factor (CUF), a critical measure of a plant’s electricity generation efficiency, is relatively lower for its solar and wind projects compared to competitors. Additionally, an analysis of the company’s price-to-earnings (P/E) ratio against its peers indicates overvaluation, raising concerns about its long-term wealth creation prospects. Consequently, investors are advised to avoid the IPO.”

NTPC Green Energy is raising ₹10,000 crore through a fresh issue and proposes to use ₹7,500 crore to repay/ prepay, in full or in part, debt availed by its subsidiaries. The remaining amount is tagged for general corporate purposes.

GEL competes with Adani, Tata and JSW groups amongst others. Though incorporated only in April 2022, the strong parentage and execution track record of the management warrants a premium. But even accounting for it, the valuation demanded in the IPO remains high. For perspective, Adani Green Energy, a pure-play IPP player, trades at 28.7 times EV to Revenue TTM and 22 times Price to Book, while ACME Solar, an integrated player with in-house EPC capabilities, trades at 17.2 times and 7 times respectively.

NTPC Green Energy IPO has been subscribed 0.19 times or 19% as at 12.36 pm on November 19, 2024.

• NII: 0.07 times
• Retail: 0.81 times
• Employee portion: 0.11 times
• Reservation portion shareholder: 0.33 times
• QIB: NIL

Total: 0.19 times

Reliance Securities views NGEL’s strategic initiatives and financial strength as compelling reasons for long-term investment. “With a prudent business model and consistent earnings growth, NGEL is well-positioned to capitalize on the increasing demand for renewable energy in India,” the brokerage stated.

NTPC Green Energy IPO opened today, November 19, 2024, and will close on November 22, 2024.

​NTPC Green Energy IPO​ has been subscribed 0.16 times or 16% as at 11.48 am on November 19, 2024.

• NII: 0.06 times
• Retail: 0.68 times
• Employee portion: 0.09 times
• Reservation portion shareholder: 0.28 times
• QIB: NIL

NTPC shares traded at ₹370 on the NSE, up 0.90% as at 11.33 am. The IPO of its wholly-owned subsidiary NTPC Green Energy is now open and available for subscription.

The wholly-owned subsidiary of NTPC Ltd, NTPC Green Energy has declared the price band of the public issue at ₹102-108 apiece. 

The bid lot size for NTPC Green Energy IPO is 138 Equity Shares and in multiples thereof and the IPO will close on November 22. 

• IDBI Capital Markets & Securities Limited
• HDFC Bank Limited
• IIFL Capital Services Limited (formerly known as IIFL Securities Limited)
• Nuvama Wealth Management Limited

NTPC Green Energy has raised ₹3,960 crore via anchor book on Monday with ​LIC ​being the biggest investor worth ₹500 crore.

Out of the total allocation of 36.67 crore equity shares to the anchor investors, 14.53 crore shares were allocated to 16 domestic mutual funds through a total of 72 schemes,” NTPC Green Energy said.

KS Badri Narayanan of businessline writes| ​Click to read the full report here​

NTPC Green Energy raised ₹3,960 crore via anchor book on Monday with LIC being the biggest investor worth ₹500 crore.

Out of the total allocation of 36.67 crore equity shares to the anchor investors, 14.53 crore shares were allocated to 16 domestic mutual funds through a total of 72 schemes,” NTPC Green Energy said.

Marquee global institutional investors that became shareholders in NTPC Green Energy via anchor book included New World Fund, International Growth and Income Fund, Goldman Sachs, Morgan Stanley, New York State Teachers Retirement System, Government of Singapore, Monetary Authority of Singapore, T Rowe, Abu Dhabi Investment Authority, and BNP Paribas.

As per the exchange data filing, Life Insurance Corporation of India was allotted 12.63 per cent, New World Fund 5.29 per cent, Goldman Sachs India 5.70 per cent and Government of Singapore 5.31 per cent, among the top anchor investors. 

Domestic institutional investors such as ICICI Prudential Mutual Fund, Nippon Life India, Kotak AMC, Aditya Birla Sun Life AMC, DSP Mutual Fund, Whiteoak Capital, Canara Robeco MF, Invesco India, SBI Life Insurance, HDFC Life Insurance, Edelweiss Trusteeship, Baroda BNP Paribas MF, HSBC MF, Aditya Birla Sun Life Insurance, Allianz India Equity, Bandhan Mutual Fund, PI Opportunities AIF, Bank of India MF, Union MF, ITI MF, and Canara HSBC Life Insurance also bought shares of the company.

KS Badri Narayanan of businessline writes| Click to read the full report here

NTPC Green Energy IPO has been subscribed 0.11 times as at 11.03 am on November 19, 2024. NIIs subscribed 0.04 times, retail 0.47 times. employee portion 0.06 times, and reservation portion for shareholders 0.19 times. 

QIB portion: NIL

• In terms of valuation, the IPO is priced aggressively at a P/E ratio of 264x as of FY 2024, which is significantly higher than its peers
• The aggressive valuation suggests that the IPO may be suited for only investors with a high-risk appetite and investing for long term (3-5 yrs), GMP indicates minimal listing gains.
• The company has commendable growth potential in a growing sector, its high valuation could pose risks for investors investing with a view of short-term gains.

- Gaurav Garg, Research Analyst at Lemonn Markets Desk

“At the upper price band of ₹108, NGEL is available at P/Bv of 4.9x (on FY25E annualised financials), which appears to be fairly priced. We assign a “Subscribe” rating for the issue on a long-term investment basis, considering its strong brand recall, superior execution capabilities, portfolio expansions, investment in nextgen energy solutions (Battery Energy Storage Systems & Green Hydrogen derivatives) and promising industry outlook.”

- Geojit Research

• QIB: NIL
• NIIs: 0.01 times
• Retail: 0.11 times
• Employee portion: 0.01 times
• Reservation portion Shareholder: 0.02 times

Total: 0.02 times

Key risks include dependency on government utilities for revenue, cost volatility in renewable energy components, and execution challenges for upcoming projects. The company’s geographic concentration in Rajasthan, where over 60% of its capacity resides, also poses a risk.

Ventura Securities advises investors to subscribe to the issue.

NTPC shares gained 1.16% on the NSE to trade at ₹370.95 as at 10 am. The IPO of its wholly-owned subsidiary NTPC Green Energy opens today.

The much-awaited ₹10,000-crore IPO of ​NTPC Green Energy​ opens today for public subscription at a price band of ₹102-108. The IPO is entirely fresh issue by the largest renewable energy public sector enterprise. Before the launch of IPO, NTPC was the only shareholder with 100 per cent stake.

Meanwhile, as part of IPO process, NTPC Green Energy has raised ₹3,960 crore via anchor book on Monday with LIC being the biggest investor worth ₹500 crore.

The company has finalised allocation of nearly 36.67 crore equity shares to anchor investors at a price of ₹108 per share, the subsidiary of NTPC said in its filing to exchanges.

Marquee global institutional investors that became shareholders in NTPC Green Energy via anchor book included New World Fund, International Growth and Income Fund, Goldman Sachs, Morgan Stanley, New York State Teachers Retirement System, Government of Singapore, Monetary Authority of Singapore, T Rowe, Abu Dhabi Investment Authority, and BNP Paribas.

As per the exchange data filing, Life Insurance Corporation of India was allotted 12.63 per cent, New World Fund 5.29 per cent, Goldman Sachs India 5.70 per cent and Government of Singapore 5.31 per cent, among the top anchor investors.

KS Badri Narayanan of businessline writes | ​Click to read the full report here​

SBI Securities recommends subscribing to the IPO at the upper price band, emphasising long-term growth prospects aligned with India’s renewable energy goals. Investors should weigh potential returns against the inherent risks in the renewable energy sector.

NTPC Green Energy raised ₹3,960 crore via anchor book on Monday with LIC being the biggest investor worth ₹500 crore.

The much-awaited ₹10,000-crore IPO of NTPC Green Energy opens today for public subscription at a price band of ₹102-108. The IPO is entirely fresh issue by the largest renewable energy public sector enterprise. Before the launch of IPO, NTPC was the only shareholder with 100 per cent stake.

While 75 per cent of the IPO portion is reserved for Qualified Institutional Buyers (QIBs), 15 per cent for Non-Institutional Investors (NIIs) and the remaining 10 per cent for Retail Investors. The bid lot size for the IPO is 138 Equity Shares and in multiples thereof and the IPO will close on November 22. 

Meanwhile, as part of IPO process, NTPC Green Energy has raised ₹3,960 crore via anchor book on Monday with ​​LIC being the biggest investor worth ₹500 crore​​.

​NTPC Green Energy Ltd (NGEL), a wholly owned subsidiary of NTPC Ltd, is set to launch its initial public offering (IPO) on November 19​, with the issue closing on November 22. The company is seeking to raise ₹10,000 crore through a fresh issue of shares priced between ₹102 and ₹108 per share.

NGEL, India’s largest renewable energy public sector enterprise excluding hydropower, operates a portfolio of solar and wind power projects with an operational capacity of around 3.3 GW (Solar – 3.2 GW and Wind – 0.1 GW) and projects awarded and contracted add up to 13.6 GW as of September 2024, with a target to reach 60 GW of non-fossil capacity by FY32.

NTPC Green Energy, the renewable energy arm of the NTPC, mobilised ₹3,960 crore from anchor investors on Monday, a day before its initial share-sale opening for public subscription.

New World Fund Inc, Goldman Sachs Funds, Government of Singapore, Life Insurance Corporation of India, ICICI Prudential Mutual Fund (MF), Nippon India MF, DSP MF and Kotak MF are among the anchor investors, according to a circular uploaded on the BSE’s website. - PTI