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About NTPC Green IPO
NTPC Green is preparing to launch a Rs 10,000 crore book. It will comprise entirely a fresh issue of 92.59 crore shares. The company is preparing to make its debut on both the BSE and NSE.
Retail investors must invest at least Rs 14,904. Small NII investors are required to make a minimum investment of Rs 208,656 for 1,932 shares, equivalent to 14 lots. Large NII investors need to invest a minimum of Rs 1,013,472 for 9,384 shares, which amounts to 68 lots.
Kfin Technologies Ltd is acting as the registrar for the issue. IDBI Capital Market Services Ltd, HDFC Bank Ltd, IIFL Securities Ltd and Nuvama Wealth Management Ltd are the book running lead managers in this IPO.
NTPC Green IPO GMP Details:
The most recent GMP of the IPO is Rs 3, as of 14th November, 2024 10:28 AM. The IPO has a price band of Rs 108. The estimated listing price for NTPC Green is Rs 111, reflecting a potential gain of 2.78% per share.
NTPC Green IPO Details:
| NTPC Green IPO Opening Date and Closing Date | 19th November to 22nd November |
| Face Value | Rs 10 per share |
| Price Band | Rs 102 to Rs 108 per share |
| Lot Size | 138 Shares |
| Total Issue Size | 925,925,926 shares (aggregating up to Rs 10,000 Cr) |
| Fresh Issue | 925,925,926 shares (aggregating up to Rs 10,000 Cr) |
| Employee Discount | Rs 5 per share |
| Issue Type | Book-Built Type Issue |
| Listing At | NSE, BSE |
| Shareholding Pre-Issue | 7,500,000,000 |
| Shareholding Post Issue | 8,425,925,926 |
| Basis of Allotment | Monday, 25th November, 2024 |
| Refund Initiation | Tuesday, 26th November, 2024 |
| Credit of Shares in Demat | Tuesday, 26th November, 2024 |
| Listing Date | Wednesday, 27th November, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 22nd November, 2024 |
| Draft Red Herring Prospectus | Link |
| Red Herring Prospectus | Link |
NTPC Green Company Details
In April 2022, NTPC Green Energy Limited was incorporated to diversify and speed up renewable energy based activities approved in 2020, and is a wholly-owned subsidiary of NTPC Limited.
As of 31st August, the installed capacity of the company consisted of 3,071 MW from solar and 100 MW from wind farm projects in six different states.
As of 30th June, the total portfolio increased to 14,696 MW where 2,925 MW was made up of operating projects whilst 11,771 MW was made up of contracted and awarded projects.
There were 15 off-takers for 37 solar and 9 wind projects respectively. The Corporation was developing and building 31 renewable energy projects in 7 states with an overall capacity of 11,771 MW.
The company had a workforce of 234 employees and met its requirements by using 45 contract workers.
NTPC Green Lot Size, Shares, And Their Value:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 138 | Rs 14,904 |
| Retail (Max) | 13 | 1,794 | Rs 193,752 |
| S-HNI (Min) | 14 | 1,932 | Rs 208,656 |
| S-HNI (Max) | 67 | 9,246 | Rs 998,568 |
| B-HNI (Min) | 68 | 9,384 | Rs 1,013,472 |
Investor categories and NTPC Green shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not less than 75.00% of the offer |
| Retail Shares Offered | Not more than 10.00% of the Offer |
| NII (HNI) Shares Offered | Not more than 15.00% of the Offer |
NTPC Green Company Performance:
For the period ended on 31st March, 2024 & 31st March, 2023:
| Periods Ended | 31st Mar, 2024 | 31st Mar, 2023 |
| Assets | Rs 27,206.42 Cr. | Rs 18,431.40 Cr. |
| Revenue | Rs 2,037.66 Cr. | Rs 170.63 Cr. |
| Profit After Tax | Rs 344.72 Cr. | – |
| Net Worth | Rs 6,232.14 Cr. | Rs 831.12 Cr. |
| Reserves and Supplies | Rs 512.60 Cr. | Rs 167.88 Cr. |
| Total Borrowing | Rs 12,796.74 Cr. | – |
NTPC Green IPO: Worth Investing?
Financial Performance:
Revenue: The company generated Rs 1,132.74 crore in revenue during the period ended on 30th September, 2024.
Profit After Tax (PAT): The company earned a profit of Rs 175.30 crore after deducting taxes.
Net Worth: The company’s net worth, which represents the total value of the company’s assets minus its liabilities, is Rs 8,189.18 crore.
Financial Position:
Assets: The company’s total assets amounted to Rs 32,408.30 crore.
Reserves and Surplus: The company has accumulated reserves and surplus of Rs 596.08 crore.
Total Borrowing: The company has borrowed a total of Rs 17,057.50 crore.
NTPC Green Key Performance Indicators (KPI) and their values:
The market capitalisation of NTPC Green IPO is Rs 91,000 crore. As of 30th September, KPI and their values are:
| KPI | Values |
| Return on Equity (ROE) | 7.39% |
| Return on Net Worth (RoNW) | 2.14% |
| Price to Book Value (P/BV) | 9.89 |
| Debt/Equity | 1.91 |
| PAT Margin (%) | 16.2 |
Objectives of NTPC Green IPO:
The company plans to use the funds raised for:
- Investing in its subsidiary, NTPC Renewable Energy Limited (NREL), to help pay off some or all of NREL’s current loans.
- General corporate expenses.
Some major risks associated with the NTPC Green IPO are:
- Over 87% of the company’s revenue in FY24 comes from its top five customers, with one providing almost 50%. Losing any key customer could impact the business.
- The company relies on third-party suppliers for materials and equipment. Delays in supply can affect business and finances.
- Most of NTPC Green Energy’s renewable projects in FY24 and up to September 2024 are in Rajasthan, so any local disruptions could impact business.
- The company has high debt, and failure to meet repayments could harm its financial stability.
- Seasonal factors affect the business, leading to potential fluctuations in performance.
Frequently Asked Questions (FAQs)
What is the price band of NTPC Green’s IPO?
Price band has been fixed at Rs 102 and Rs 108 per share.
What is the retail investor quota of NTPC Green’s IPO?
A maximum of 10% shares shall go to the retail investors.
Where can I track NTPC Green’s stock performance?
You can monitor it on Unicorn Signals once it’s listed.
How can I apply for NTPC Green’s Initial Public Offer?
Via your demat account or through the banking or other financial institutions during the period of IPO.
When is the Last Date of IPO subscription for NTPC Green?
The cut-off time is 22nd November, 2024, at 5 PM; however, most brokers stop accepting applications between 1-3 PM.
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