NTPC Green Energy Limited (NGEL), a renewable energy-focused subsidiary of NTPC Ltd, is set to launch its much-anticipated Initial Public Offering (IPO) on November 19, 2024. The IPO price band is set between ₹102 to ₹108 per share, with each share having a face value of ₹10. The IPO will close on November 22, 2024, providing retail investors, qualified institutional buyers (QIB), and non-institutional investors (NII) with a limited opportunity to participate in one of India’s leading public sector renewable energy investments.

Key Dates and Allotment Process

The subscription window for the NTPC Green Energy IPO spans four days, from November 19 to November 22, 2024. Here’s a timeline of the key dates:

• Anchor Investors’ Allocation: November 18, 2024
• Subscription Start Date: November 19, 2024
• Subscription Close Date: November 22, 2024
• Allotment Finalization: November 25, 2024
• Refund Initiation & Demat Credit: November 26, 2024
• Expected Listing Date on BSE and NSE: November 27, 2024

The IPO lot size is 138 equity shares, meaning retail investors must apply for at least this minimum amount and can do so in multiples of 138 shares thereafter. Notably, employees are offered a ₹5 per share discount, providing additional incentive for eligible employees to invest.

IPO Structure and Reserved Quotas

NTPC Green Energy has reserved 75% of the IPO shares for QIBs, 15% for NIIs, and 10% for retail investors. This structure aligns with the company's strategy to attract strong institutional support while also encouraging retail participation. Additionally, ₹20 crore worth of shares are reserved for employees, who receive a discount of ₹5 per share as part of the offering.

Purpose and Allocation of IPO Proceeds

This ₹10,000 crore IPO comprises a fresh issue of equity shares without an Offer for Sale (OFS) component. Proceeds from the IPO will be utilized as follows:

• ₹7,500 crore will be directed toward investing in NTPC Renewable Energy Limited (NREL).
• The funds will also help repay or prepay specific debts associated with NREL.
• Remaining proceeds will be used for general corporate purposes.

The focus on debt reduction and strategic investment in NREL underscores NTPC Green Energy’s commitment to financial health and growth within the renewable sector.

NTPC Green Energy’s Market Position and Financial Performance

According to a CRISIL report, NTPC Green Energy Limited (NGEL) holds the title of the largest public sector company in renewable energy (excluding hydro) in terms of both operational capacity and power generation as of the fiscal year ending in 2024. The company’s total contracted capacity is approximately 11,771 MW, with ongoing projects across 37 solar and 9 wind projects spread across 7 states.

In fiscal 2024, NTPC Green reported revenues of ₹1,962.60 crore, representing a 46.82% increase from ₹910.42 crore in fiscal 2022. The company’s profit after tax (PAT) grew at a CAGR of 90.75%, rising from ₹94.74 crore in fiscal 2022 to ₹344.72 crore in fiscal 2024. For the quarter ending June 30, 2024, NTPC Green posted a PAT of ₹138.61 crore on operational revenue of ₹578.44 crore.

NTPC Green Energy’s Project Portfolio

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