NTPC Green Energy IPO: Price band set at ₹102-108 per share; check issue details, key dates, more

NTPC Green Energy IPO price band: The NTPC Green Energy Limited IPO price band has been fixed in the range of ₹102 to ₹108 per equity share of the face value of ₹10. The NTPC Green Energy IPO date of subscription is scheduled for Tuesday, November 19, and will close on Friday, November 22. The allocation to anchor investors for the NTPC Green Energy IPO is scheduled to take place on Monday, November 18.

The floor price and the cap price are 10.20 times and 10.80 times the face value of the equity shares respectively. The NTPC Green Energy IPO lot size is 138 equity shares and in multiples of 138 equity shares thereafter.

NTPC Green Energy IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. Employees have been reserved equity shares aggregating up to 20 crore, and a discount of ₹5 per equity share is being offered to eligible employees.

Tentatively, NTPC Green Energy IPO basis of allotment of shares will be finalised on Monday, November 25 and the company will initiate refunds on Tuesday, November 26 while the shares will be credited to the demat account of allottees on the same day following refund. NTPC Green Energy share price is likely to be listed on BSE and NSE on Wednesday, November 27.

NTPC Green Energy, promoted by NTPC Ltd, is recognized as the largest public sector company in renewable energy (excluding hydro) in terms of operational capacity and power generation for Fiscal 2024, as indicated by a CRISIL report mentioned in the draft red herring prospectus (DRHP).

As of June 30, 2024, NTPC Green was collaborating with 15 offtakers on 37 solar projects and 9 wind projects, and it is in the process of constructing 31 renewable energy projects across 7 states, totaling 11,771 MWs that have been contracted and awarded. Furthermore, it has been operating 2,925 MWs through 14 solar projects and 2 wind projects.

NTPC Green Energy has experienced a revenue growth rate of 46.82%, increasing from ₹910.42 crore in the fiscal year 2022 to ₹1,962.60 crore in the fiscal year 2024. The profit after tax has seen a compound annual growth rate (CAGR) of 90.75%, rising from ₹94.74 crore in fiscal 2022 to ₹344.72 crore in fiscal 2024.

For the quarter ending June 30, 2024, operational revenue reached ₹578.44 crore, while the profit after tax was ₹138.61 crore, with both amounts calculated on a restated basis.

As per the red herring prospectus (RHP), the company's listed peers are Adani Green Energy Ltd (with a P/E of 259.83), and ReNew Energy Global PLC (with a P/E of 47.05).

NTPC Green Energy IPO details

NTPC Green Energy's IPO, valued at ₹10,000 crore, will consist solely of newly issued equity shares, with no component for Offer For Sale (OFS).

The proceeds from this new issuance, totalling ₹7,500 crore, will be directed towards investments in NTPC Renewable Energy Limited (NREL), repaying or prepaying certain existing debts associated with NREL, as well as for general corporate needs.

The lead managers handling this offering are IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited, while KFin Technologies Limited will act as the registrar for the offering.

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