Last Updated on: 27th November 2024, 03:35 am
NTPC green energy ltd has come up with an Initial Public offer of Rs.10000 crore. The offer is completely a fresh issue of shares that is the company is not selling share of its own.
About the company.
NTPC Green Energy Limited incorporated in the year 2022, is a wholly owned subsidiary of NTPC Limited .It has presence over 6 states.
How the company was formed?
NTPC Green Energy Limited was formed by transferring some of the assets of Solar and wind Power from NTPC Limited.
The company aims to create a capacity of 60 GW of Renewable Energy by the year 2032.
About the IPO
| DATE | 19th November 2024 to 22nd November 2024 |
| Price Band | Rs.102 to Rs.108 per share |
| Issue value | Rs.10,000 cr |
| Lot size | 138 shares |
| Min Investment | RS.14076 |
| Exchange | NSE,BSE |
| Listing Date | 27th November ,2024 |
| UPI Mandate last Date | 22nd November,2024. |
| Basis of allotment Date | 25th November,2024 |
| Refund | 26th November,2024 |
| Share credit | 26th November,2024 |
| Listing on | 27th November,2024 |
| Issue type | Book building |
Purpose of issue
The company proposes to use the proceeds in the following manner
1)Debt reduction of its subsidiary Rs7500 cr
2)General corporate purpose Rs.2500 cr
Business model.
NTPC Green Energy ltd is primarily into Renewable energy business.The company plan to work in four major sector and in eachbof theee the company has projects.At present Solar contributes the highest revenue and has the highest capacity followed by wind.One of the factor which differentiates the company from others is that it is into very large projects and that does not only gives economies of scale but also keeps it above competition.Moreover the support of such an experienced and strong parent is an added advantage.
1)Solar Power
2)Wind
3)Storage
4)Green Hydrogen.
Lead Managers
1)HDFC Bank 2)Nuvama Wealth management Ltd 3)IiFL Securities Ltd.4)IDBI Capital market Services Ltd
Earnings & Valuation..
In FY 24 ,NTPC Green Energy Ltd has earned a revenue of Rs.1962.59 crores as against Rs.169.69 crore,which is 11 times more than in FY.23 .Net profit was Rs.344.72 crores in FY24 which was Rs.171.23 crores oin FY23,a growth of 101% year on year in Net profit.
At Rs.10000 crore IPO is a valuation of around Rs.90000 crore if it lists at IPO price.So at this price the valuation would almost equal to Waree Energies,whereas the net profit of Waree Energies is much higher than it.
As the company has presented a future road map and plans which is very promising and thetefore this could be a good long term player with potential of 3x.
IPO Subscription Status:
The IPO is subscribed 2.4 times as per news on third day.Retail investors has shown their strong interest along with NTPC shareholders and institutional investors.Qualified Institutional Buyers(QIB)portion was subscribed 3.22 times whereas Retail investors by 3.4 times.However NII portion did not saw much enthusiasm and was about 81% was applied .
The company has already raised Rs.3960 crore from achor investors.
Listing Date:
The allotment would be finalised and the investors would either get the shares in their demat or would get the refund by the end of November 26th ,2024.After this the listing is supposed to be on 27th November,2024,Wednesday
What is the expected Listing Price ?
NTPC Green Energy Ltd shares is to list today i.e.27th November 2024.The GMP is showing that listing will wont be as expcted,it could list at around Rs.112 to Rs.115 .The company is of course a good long term bet.The sentiments could be bit better as owing to the recent joint venture nès for Energy park.The price could move 10 to 15 % higher but how long it would sustain and what would be the future has to be seen.
Analysis & Conclusion
If one expects the price to double from the IPO price,it would be a very stretched valuation and at this level would make it expensive.The company has robust future plans which makes it a long term bet.
Owing to the present market sentiments the and the high price of IPO compared to what was expected earlier could dampen the mood and the listing also.But the GMP is showing a sign of possitive listing around Rs.115.
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