About NTPC Green Energy
Incorporated in 2022, NTPC Green Energy is a wholly-owned subsidiary of NTPC Limited, a ‘Maharatna’ central public sector enterprise. Its renewable energy portfolio encompasses both solar and wind power assets with a presence across multiple locations in more than six states. Its operational capacity was 3,071 MW of solar projects and 100 MW of wind projects as of August 31, 2024. The company’s projects generate renewable power and feed that power into the grid, supplying a utility or off-taker with energy. For its operational projects, It has entered into long-term Power Purchase Agreements (PPAs) or Letters of Award (LoAs) with off-takers like government agencies and public utilities. The company aims to add around 60 GW of renewable capacity by 2032, nearly 15% of the country’s capacity.
Issue size
| Funds Raised in the IPO | Amount |
|---|---|
| Overall | ₹10,000 crores |
| Fresh Issue | ₹10,000 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
|---|---|
| Debt reduction of a wholly owned subsidiary, NTPC Renewable Energy | 7500 (75%) |
| General corporate purposes | 2500 (25%) |
Financials
| Financial Year Ended | March 2023 | March 2024 | September 2024 |
|---|---|---|---|
| Total Assets | 18431.40 | 27206.42 | 32408.30 |
| Revenue | 170.63 | 2037.66 | 1132.74 |
| Profit After Tax | 171.23 | 344.72 | 175.30 |
Note: Amount is in crores
Strengths
- The company is among the top 10 renewable energy players in India in terms of operational capacity as of June 30, 2024.
- It is promoted by NTPC Limited, which has extensive experience in executing large-scale projects, long-term relationships with off-takers and suppliers and financial strength.
- It has a Portfolio of 14,696 MWs of solar and wind projects as of June 30, 2024, with diversification across geographies and off-takers. As of June 30, 2024, the company had 15 off-takers across 37 solar projects and 9 wind projects.
- The company’s growing revenues along with strong credit ratings enable them to have a low cost of capital employed.
- It is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of June 30, 2024, and power generation in Fiscal 2024.
Risks
- The renewable energy project construction activities may be subject to cost overruns or delays which may adversely affect the business, results of operations, financial condition, and cash flows.
- The company’s operating renewable energy projects are concentrated in Rajasthan. Any significant social, political, economic, or seasonal disruption, natural calamities, or civil disruptions in Rajasthan could hurt the business.
- Any inability to collect receivables in time or at all from its utility off-takers may adversely affect the business, operations, and financial condition.
- The company has substantial capital expenditure requirements and may require additional financing to meet those requirements, which could adversely affect the financial condition.
- There is a concentrated pool of utilities and power purchasers for electricity generated by the company’s plants and projects with more than 87% of its revenue from operations from the top five off-takers in Fiscal 2024, with the single largest off-taker contributing around 50% of the revenue from operations in Fiscal 2024.
Schedule of NTPC Green Energy
| Issue open date | 19 Nov 2024 |
|---|---|
| Issue close date | 22 Nov 2024 |
| UPI mandate deadline | 22 Nov 2024 (5 PM) |
| Allotment finalization | 25 Nov 2024 |
| Refund initiation | 26 Nov 2024 |
| Share credit | 26 Nov 2024 |
| Listing date | 27 Nov 2024 |
| Mandate end date | 07 Dec 2024 |
| Lock-in end date for anchor investors (50%) | 25 Dec 2024 |
| Lock-in end date for anchor investors (remaining) | 23 Feb 2025 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar’s website and the exchange website.
Media coverage
- Finshots – Everyone’s excited about the NTPC Green Energy IPO!
- The Economic Times – NTPC Green’s Rs 10,000 cr IPO
- Times of India – PM Modi to lay the foundation for India’s largest Green Hydrogen hub on November 29th
Frequently Asked Questions (FAQs)
1. When is the NTPC Green Energy IPO date?
The NTPC Green Energy IPO opens for subscription on November 19, 2024, and closes on November 22, 2024.
2. What is the share price of the NTPC Green Energy IPO?
The price band for the NTPC Green Energy IPO is set at ₹102 to ₹108 per share.
3. What is the lot size of the NTPC Green Energy IPO?
The lot size for the NTPC Green Energy IPO is 138 shares, and the minimum order quantity is 138 shares.
4. Is there any discount for Employees in NTPC Green Energy IPO?
There is a discount for the Employee (EMP) category of ₹5 per share.
5. Is there any eligibility criteria for the shareholder category in NTPC Green Energy IPO?
Investors holding at least one NTPC share on the date of the RHP filing i.e., 12th November are eligible to apply in the Shareholder category. There is a limit of ₹ 2 lakh for applying in this category.
6. How to apply for NTPC Green Energy IPO?
To buy NTPC Green IPO shares, follow these steps:
- Login to your Zerodha account.
- Tap on Bids.
- Tap on IPO.
- Select the NTPC Green Energy IPO from the ongoing list of IPOs and tap on Apply.
- Tap on Apply again and enter the UPI ID.
- Enter or edit the Quantity and the Price.
- Tap on the undertaking tick box and swipe the Submit button.
- Accept the mandate on the UPI app.
For more detailed guidance, please refer to the How to Apply for IPO support article.
7. How can I pre-apply for the NTPC Green Energy IPO?
To pre-apply for the NTPC Green Energy IPO in Zerodha Kite, follow these steps:
- Click on “Bids.”
- Select “IPO.”
- A list of IPOs will be displayed select the NTPC Green Energy IPO and tap on “Pre-apply.”
- Choose your investor type: Individual or Employee.
- Tap on “Pre-apply.”
- Enter your UPI ID.
- Enter or edit the quantity and price.
- Tick the undertaking box and swipe on the “Submit” button.
Accept the mandate on the UPI app; it will be sent after 10 AM on the IPO start date.
For more detailed guidance, please refer to the How to pre-apply for IPO support article.