by Suman Gupta
The Initial Public Offering of NTPC Green Energy Limited was subscribed 33% on the first day of bidding led by Retail Investors.
The issue received bids of 19,48,57,242 shares against the offered 59,31,67,575 equity shares, at a price band of ₹ 102-108, according to the data available on the stock exchanges.
Retail Portion and Non-Institutional Investors Portion were subscribed 1.33 times and 0.16 times respectively. Reservation Portion was subscribed 0.57 times.
Employee Portion was subscribed 0.17 times. Qualified Institutional Buyer Portion is yet to see traction. The issue kicked off for subscription on Tuesday, November 19, 2024, and will close on Friday, November 22, 2024.
A day before the opening of the issue, NTPC Green Energy Ltd raised Rs 3,960 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor were Capital World, Goldman Sachs, GIC, T.Rowe Price, Abu Dhabi Investment Authority, Morgan Stanley, Allianz Global, Life Insurance Corporation of India, ICICI Prudential Mutual Fund, Nippon Life India Mutual Fund, Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, DSP Mutual Fund, White Oak, Baroda BNP Mutual Fund, Canara Robeco Mutual Fund, Edelweiss Mutual Fund.
Leading brokerage firms like Anand Rathi, SBI Securities, Reliance Securities, Adroit Financial Services, Arete Securities, Arihant Capital, Geojit Financial, GEPL Capital, BP Equities, Canmoney, Chola Securities, Marwadi Financial Service, Mehta Equities, Ventura Securities, Swastika Investmart have given a “Subscribe” rating to the issue highlighting the company’s plans to expand its operational capacity from 3.3 GW to 19 GW by FY27. Supported by strong parentage, low operating costs, and access to low-cost capital, NGEL has shown robust financial growth, with significant increases in total income and net profits. NGEL’s focus on solar energy, advancements in energy storage, and green hydrogen aligns with market trends, positioning it well for long-term growth. The renewable energy sector in India offers immense opportunities, and NGEL’s strategic importance as a PSU enhances its ability to capitalize on these opportunities. NGEL has strong growth potential, with expected annual growth rates of 79% for revenue, 117.2% for EBITDA, and 123.8% for net profit from FY24 to FY27.
IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Capital Services Limited, and Nuvama Wealth Management Limited are the book-running lead managers and KFin Technologies Limited is the registrar of the offer.
Company Information
NTPC Green Energy is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of September 30, 2024 and power generation in Fiscal 2024, according to a CRISIL Report, November 2024. Its renewable energy portfolio encompasses both solar and wind power assets with presence across multiple locations in more than six states which helps mitigate the risk of location-specific generation variability.
As of September 30, 2024, its “Portfolio” consisted of 16,896 MWs including 3,320 MWs of operating projects and 13,576 MWs of contracted and awarded projects. Its Capacity under Pipeline together with its Portfolio consisted of 26,071 MWs. It had 17 offtakers across 41 solar projects and 11 wind projects.
