NTPC Green Energy aims for Rs 10,000 crore IPO splash; here's what brokerages say

NTPC Green Energy Ltd. (NGEL) is acceptable to motorboat its highly anticipated archetypal nationalist offering (IPO) connected November 19, aiming to rise astir Rs 10,000 crore. This makes NGEL’s offering the second-largest nationalist assemblage IPO successful India, pursuing Life Insurance Corporation's (LIC) record-breaking debut past year.

The IPO highlights NTPC’s assertive propulsion towards expanding its renewable vigor portfolio, marking a cardinal milestone successful India's modulation to greenish energy.

The contented volition stay unfastened for subscription until November 22, with a terms set acceptable betwixt Rs 102 and Rs 108 per share.

Brokerages person fixed a affirmative outlook for the IPO, citing maturation imaginable driven by NTPC Green's robust capableness enlargement plans and beardown fiscal backing from the genitor company.

SBI Securities recommended subscribing astatine the cut-off price, noting that the contented is priced astatine an FY25 EV/EBITDA aggregate of 35.3 times. The company’s operational capableness is projected to turn from 3.3 gigawatts (GW) successful September 2024 to six GW by FY25, eleven GW by FY26, and nineteen GW by FY27.

Reliance Securities besides issued a 'subscribe for agelong term' recommendation, highlighting NTPC Green’s strategical vantage of leveraging NTPC’s fiscal spot and semipermanent agreements, on with its propulsion into caller vigor solutions specified arsenic greenish hydrogen and storage. The brokerage expects beardown net maturation and improved fiscal ratios successful the future.

IPO allocation and usage of proceeds

The IPO volition reserve 75 per cent of shares for organization investors, 15 per cent for non-institutional investors, and 10 per cent for retail investors. Eligible employees tin avail a Rs 5 discount per share, with Rs 200 crore allocated nether the worker quota. An further Rs 1,000 crore is acceptable speech for existing NTPC shareholders.

Proceeds of Rs 7,500 crore from the IPO volition beryllium utilized to put successful NTPC Renewable Energy Ltd. (NREL) for repayment of definite outstanding borrowings and for wide firm purposes.

Company outlook: Strong maturation plans successful renewable energy

NTPC Green Energy is the largest renewable vigor nationalist assemblage endeavor (excluding hydro) successful India arsenic of September 2024. The company’s portfolio includes 3 1000 2 100 and 20 megawatts (MW) of star projects and 1 100 MW of upwind projects crossed six states. It has a pipeline of implicit 13500 MW of contracted projects and different 9 1000 1 100 and seventy-five MW nether development.

The institution aims to standard its renewable vigor capableness to sixty GW by FY32, with much than twenty-eight GW presently nether development. This IPO is acceptable to beryllium the 3rd largest of the year, pursuing Hyundai Motor India's Rs 27,870 crore and Swiggy's Rs 11,300 crore issues.