NTPC Green Energy IPO Review

NGEL is an umbrella company for the green business initiatives of NTPC and undertakes projects through organic and inorganic routes and aims to be the flag-bearer of NTPC’s green energy journey to achieve the ambitious target of 60 GW by FY 32. The company has strategically diversified its portfolio within the realm of Green Energies and participating in bidding process, tenders, and Ultra Mega Renewable Energy Power Parks (UMREPP), to achieve growth over the decade and act as a premier “Green Energy” player in India as well as globally.

The Promoters are PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF POWER, GOVERNMENT OF INDIA AND NTPC LIMITED.

The Revenues from operations for the Fiscals 2024 and 2023 were ₹20,376.57 Million and ₹1,706.31 Million, respectively. The EBITDA for the Fiscals 2024 and 2023 were ₹17,464.70 Million and ₹1,513.81 Million, respectively. The Profit after Tax for the Fiscals 2024 and 2023 was ₹3,447.21 Million and ₹1,712.28 Million, respectively.

For the NTPC Green Energy IPO, the company is issuing shares at a pre-issue EPS of ₹0.73 and a post-issue EPS of ₹0.40. The pre-issue P/E ratio is 147.94x, while the post-issue P/E ratio is 270.00x against the Industry P/E ratio is 153.44x. The company's Cash RoE for FY24 is 17.76%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of NTPC Green Energy showing potential listing gains of 0%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the NTPC Green Energy Limited IPO for Listing gain or long term investment purposes.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

About the Author
 CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.
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