NTPC Green IPO opens for subscription from today at a price band of ₹102-108

A signboard of NTPC is seen extracurricular its bureau successful Mumbai. | Photo Credit: REUTERS

The Initial Public Offering (IPO) of NTPC Green Energy Ltd (NGEL), a subsidiary of the Maharatna nationalist assemblage endeavor NTPC Ltd, opened for subscription today, Tuesday (November 19, 2024). The IPO is offered, astatine a terms set of ₹102-108 per share, and subscription is unfastened until Friday (November 22, 2024).

The institution plans to rise a full of Rs ₹10,000 crore and is scheduled to database connected the banal exchanges connected November 27. Shareholders of NTPC tin use for the IPO nether a peculiar shareholder quota. Additionally, NTPC employees person a abstracted quota for applying.

The batch size for the IPO is 138 shares. The shares volition beryllium transferred to demat accounts connected November 26. NGEL aims to standard its operational renewable capableness to 19 GW by FY27, reflecting its committedness to India's cleanable vigor transition. This IPO is portion of NTPC Ltd's broader strategy to execute 60 GW of renewable vigor capableness by 2032.

NTPC presently contributes 24% of India's full powerfulness procreation and views NGEL arsenic a captious conveyance to thrust its renewable vigor ambitions. As of September 2024, NGEL operates 3,220 MW of star and 100 MW of upwind powerfulness projects.

The institution has a robust pipeline with 13,576 MW of contracted and awarded projects and an further 9,175 MW successful development. NGEL's renewable projects span cardinal states specified arsenic Rajasthan, Gujarat, Tamil Nadu, and Uttar Pradesh. This geographical diversification mitigates risks associated with location-specific procreation variability, ensuring unchangeable and reliable vigor output.

With NTPC's extended acquisition successful task improvement and execution, NGEL is well-positioned to present connected its ambitious targets. The company's ownership of 8,900 acres of freehold onshore and 45,700 acres of leasehold onshore further bolsters its instauration for aboriginal expansion. Beyond accepted star and upwind energy, NGEL is exploring precocious solutions similar greenish hydrogen, greenish chemicals, and artillery vigor retention systems.

These initiatives align with India's sustainability goals and presumption NGEL to pat into emerging opportunities successful the planetary cleanable vigor market.NGEL benefits from NTPC's beardown fiscal backing, ensuring entree to low-cost capital. This vantage is important for maintaining profitability successful the capital-intensive renewable vigor sector. The company's operational efficiencies and strategical absorption further heighten its marketplace competitiveness.

At the precocious terms set of ₹108 per share, NGEL is valued astatine an FY24 EV/EBITDA aggregate of 53.4x. Analysts person expressed assurance successful the company's semipermanent maturation imaginable and recommended subscription for investors seeking sustainable and semipermanent profitable opportunities.

Published - November 19, 2024 01:14 p.m. IST