NTPC Green Energy IPO Overview
NTPC Green Energy Limited (NGEL) is the green energy arm of NTPC Ltd, tasked with spearheading the company's green business initiatives. The company aims to help NTPC achieve its ambitious target of 60 GW of green energy capacity by FY 2032. As a diversified player in the green energy sector, NTPC Green Energy is actively involved in Ultra Mega Renewable Energy Power Parks (UMREPP), bidding processes, and tenders, positioning itself as a leading green energy player in both India and global markets.

NTPC Green Energy is coming out with a book-built issue in the IPO market, with a total issue size of ₹10,000 Crores, consisting entirely of a fresh issue of 9,259.25 lakh shares. The IPO subscription period opens on November 19, 2024, and closes on November 22, 2024. The final allotment date is expected to be November 25, 2024, with shares slated for listing on the BSE & NSE on or around November 26, 2024.

NTPC Green Energy IPO Pricing and Subscription Details

The price band for NTPC Green Energy IPO is set between ₹102 to ₹108 per equity share. At the upper price band of ₹108 per share, the company will have a market capitalization of ₹90,999.99 Crores. The lot size for the IPO is 138 shares, with retail investors required to invest a minimum of ₹14,904 for one lot. For High-Net-Worth Individuals (HNIs), the minimum investment is 14 lots (1,932 shares), amounting to ₹2,08,656.

The IPO will be open for subscription from November 19 to November 22, 2024. Following the subscription period, the IPO allotment will be finalized on November 25, 2024, and investors can check their allotment status through the registrar's website by entering their application number, PAN, or DP Client ID.

NTPC Green Energy IPO Objectives

The proceeds from the fresh issue will be utilized primarily for:

1. ₹75,000 Million will be allocated for investment in NTPC Renewable Energy Limited (NREL) for repayment or prepayment of certain borrowings.
2. The remaining funds will be directed towards general corporate purposes.

Financial Metrics and Valuation

NTPC Green Energy has witnessed significant revenue growth. For FY 2024, its revenue from operations stood at ₹20,376.57 Million, up from ₹1,706.31 Million in FY 2023. The EBITDA for FY 2024 was ₹17,464.70 Million, reflecting strong profitability, and the Profit After Tax (PAT) for FY 2024 was ₹3,447.21 Million.

For the NTPC Green Energy IPO, the company reports a pre-issue EPS of ₹0.73 and a post-issue EPS of ₹0.40. The P/E ratio for the pre-issue is 147.94x, while the post-issue P/E ratio is 270.00x. The industry average P/E ratio is 153.44x, indicating that the IPO is fully priced compared to industry peers.

NTPC Green Energy IPO Review

Given the financial metrics and valuation of the NTPC Green Energy IPO, it appears that the issue is fully priced with high P/E ratios and modest earnings growth. The Grey Market Premium (GMP) for this IPO is reported at ₹0, suggesting no potential listing gains.

Investors' Caution and Recommendations

Investors should be cautious about participating in the NTPC Green Energy IPO, especially if they are looking for short-term listing gains or long-term investment returns. The fully priced nature of the IPO, combined with the 0% GMP, signals that there might not be immediate gains post-listing. While the company is part of the renewable energy sector, which has significant long-term potential, the valuation and GMP suggest that it may not offer substantial returns in the near term.

Investing in NTPC Green Energy IPO

Retail investors interested in the NTPC Green Energy IPO can apply through the ASBA (Application Supported by Blocked Amount) process, available at banks or online trading platforms. Investors need to ensure that they have a Demat account in place for receiving allotted shares post-IPO.

For High-Net-Worth Individuals (HNIs), the large lot size (14 lots) requires a significant investment, and careful consideration is advised before subscribing. With the 0% GMP, listing gains seem unlikely, and a longer-term strategy might be more appropriate for investors eyeing the company's green energy potential.

Stay connected for real-time updates on the NTPC Green Energy IPO and further details about the subscription status, allotment, and analysis on platforms like Finance Saathi IPO News and the Finance Saathi Telegram Channel for expert investment tips and guidance.

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