NTPC Green Energy Limited (NGEL), an umbrella company for NTPC’s green business initiatives, is set to raise ₹10,000 crores through its book-built IPO. The company is focused on becoming a global leader in renewable energy with strategic investments in wind, solar, and other clean energy projects. As part of its ambitious plans, NGEL aims to achieve 60 GW of renewable energy capacity by FY 2032.

The Current active IPO is Rajesh Power Services, C2C Advanced System, Enviro Infra Engineers and Lomosaic India.

The IPO subscription period for NTPC Green Energy runs from November 19 to November 22, 2024, with a share price band of ₹102 to ₹108 per equity share. At the upper price band, the market capitalization of NTPC Green Energy is set to be ₹90,999.99 crores. The lot size for the IPO is 138 shares, and retail investors need to invest a minimum of ₹14,904, while High-Net-Worth Individuals (HNIs) need to invest ₹2,08,656 for 14 lots.

IPO Financial Overview

• Revenue from operations: ₹20,376.57 million in FY24, up from ₹1,706.31 million in FY23.
• EBITDA: ₹17,464.70 million in FY24, compared to ₹1,513.81 million in FY23.
• Profit after Tax (PAT): ₹3,447.21 million in FY24, significantly higher than ₹1,712.28 million in FY23.

NTPC Green Energy’s pre-issue Earnings Per Share (EPS) is ₹0.73, and the post-issue EPS is ₹0.40, indicating fully priced shares with a P/E ratio of 147.94x before the issue and 270.00x after the issue. The industry average P/E is 153.44x. The company’s Cash Return on Equity (RoE) for FY24 is 17.76%, further highlighting its financial stability.

Grey Market Premium (GMP) and Subscription

The Grey Market Premium for NTPC Green Energy IPO is currently at ₹0, with no listing gains expected. The IPO has been fully subscribed with a subscription rate of 2.42X as of the final day on November 22, 2024.

The Upcoming IPOs in this week and coming weeks are Rajputana Biodiesel, Apex Ecotech, Abha Power and Steel, Agarwal Toughened, Ganesh Infraworld, Rosmerta Digital, Avanse Financial and Nisus Finance.

IPO Use of Proceeds

The fresh issue proceeds will be used for:

1. ₹75,000 million for investment in NTPC Renewable Energy Limited (NREL) for repayment of borrowings.
2. General corporate purposes.

Allotment Process

Investors can check the NTPC Green Energy IPO allotment status starting November 25, 2024, on the registrar's website. To check the allotment status, visit the site, select NTPC Green Energy IPO, and enter your application number, PAN, or DP Client ID.

Recommendation

Based on the fully priced valuation, GMP, and financial performance, we recommend investors to avoid the NTPC Green Energy IPO for both listing gains and long-term investment purposes.

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