NTPC Green Energy IPO: The Rs 10,000 crore IPO is fully subscribed with retail and qualified institutional investors emerging as top bidders. Next week, the IPO will focus on its shares allotment, and credit of shares to demat account, followed by listing on BSE and NSE. The latest grey market premium (GMP) rose, signaling a premium market debut.

NTPC Green Energy IPO Subscription Status:

On the final day, the IPO was subscribed 2.42 times, with strong bidding by retail, institutional and NTPC shareholders. The portion reserved for retail individual investors (RII) and qualified institutional buyers (QIB) subscribed by 3.44 times and 3.32 times respectively. However, a portion of non-institutional investors (NIIs) did not fully subscribe and about 81% of the reserved shares saw bidding.

NTPC Green Energy IPO GMP:

As per Investor Grain data, NTPC Green Energy IPO’s last GMP is Rs 2.50, last updated Nov 23rd 2024 05:03 AM. With a price band of 108.00, NTPC Green Energy IPO’s estimated listing price is Rs 110.5 (cap price + today’s GMP). The expected percentage gain/loss per share is 2.31%.

NTPC Green Energy IPO Allotment Status:

After the IPO, the allotment of shares is expected to be held on November 25, which will be next week’s Monday. Investors will be able to check the status of their application through the online websites of BSE, NSE and the registrar of the IPO aka Kfin Technologies.

NTPC Green Energy IPO Listing Date:

Once the allotment of shares is finalised, investors will either receive the shares to their demat account or refunds by the end of November 26. Following this, the listing will take place on Wednesday, November 27, 2024.

NTPC Green Energy IPO Details:

The IPO was an entirely fresh issue worth Rs 10,000 crore and opened on Tuesday, November 19, 2024. Subscription closed on Friday, November 22, 2024. The price band for the Offer was determined at Rs 102 – Rs 108 per equity share.

Before the IPO, NTPC Green Energy allocated 36,66,66,666 equity shares at Rs 108 per share on Monday, November 18, 2024, to its anchor investors. The company raised about Rs 3,960 crore from these investors.

Since the IPO is an entirely fresh issue, NTPC Green Energy will utilise the entire proceeds from the offer. Of the total Rs 10,000 crore size, NTPC Green Energy plans to utilize about Rs 7,500 crore for investment in its wholly owned subsidiary, NTPC Renewable Energy Limited (NREL) for repayment/ prepayment, in full or in part of certain outstanding borrowings availed by NREL. The rest of the proceeds could be used for general corporate purposes or other development.

As per ICICI Direct’s note, sales and PAT at NGEL have grown at a CAGR of 10x/2x, respectively, over FY23-24, led by capacity scaleup. NGEL clocked EBITDA margins of 89% in FY24 with RoCE placed at 4.8%. At the upper end of the price band, NGEL will command a valuation of ~264x P/E, ~60x EV/EBITDA & ~45x P/S on FY24 basis.

The brokerage believes delays in the execution of projects, increasing competition and a decrease in IRR of the projects — could be the risks and concerns about the company ahead.

NGEL has a portfolio of 16.9 GW of renewable assets of which 3.3 GW are operational, and 13.6 GW of projects are contracted & awarded. Additionally, 9.2 GW are under the pipeline. NGEL has guided capacity addition of 3GW/5GW/8GW in FY25E/26E/27E. Operational capacity is expected to reach ~19GW by FY27E and 60GW by FY32E, the brokerage highlighted.

Story first published: Saturday, November 23, 2024, 9:06 [IST]