NTPC Green Energy IPO: GMP intact ahead of opening; top details from RHP

NTPC Green Energy IPO: The unlisted shares of NTPC's renewable energy arm, NTPC Green Energy, have started trading at a premium in the grey market as the company announced the price band and details of its upcoming initial public offering (IPO).

 

NTPC Green Energy's unlisted shares were quoted at a premium of Rs 5 over the upper end of the IPO price, resulting in a grey market premium (GMP) of nearly 5 per cent, according to sources tracking grey market activities.

 

Before the NTPC Green Energy IPO opens for public subscription, here are the key insights from the company's Red Herring Prospectus (RHP) filed with the Securities and Exchange Board of India (Sebi):

 

 

NTPC Green Energy IPO details

The NTPC Green Energy IPO comprises a fully fresh issue of 925,925,926 shares.  The company has set the price band at Rs 102-108, with a lot size of 138 shares for its IPO.  Investors can bid for a minimum of 138 shares and in multiples thereof. For Small Non-Institutional Investors (sNII), the minimum lot size is 14 lots or 1,932 shares, totaling Rs 208,656. For Big Non-Institutional Investors (bNII), it is 68 lots or 9,384 shares, totaling Rs 1,013,472.

 

Kfin Technologies is the registrar for the NTPC Green Energy IPO, while the book-running lead managers include IDBI Capital Market Services, HDFC Bank, IIFL Securities, and Nuvama Wealth Management. 

 

NTPC Green Energy IPO key dates

Bidding for anchor investors is scheduled to take place on Monday, November 18, 2024.

 

The public offering of NTPC Green Energy will remain open for subscription from Tuesday, November 19, 2024, to Friday, November 22, 2024. Following the closure of the subscription window, the basis of allotment for the NTPC Green Energy IPO is set to be finalised on Monday, November 25, 2024, with shares expected to be credited to demat accounts by Tuesday, November 26, 2024.

 

NTPC Green Energy shares are expected to debut on the market on Wednesday, November 27, 2024, by listing on the BSE and NSE.

 

NTPC Green Energy IPO objective

The company intends to use the net proceeds towards funding investments in its wholly owned subsidiary, NTPC Renewable Energy (NREL), for the repayment/prepayment, in full or in part, of certain outstanding borrowings by NREL. The remaining amount will be used for general corporate purposes, as outlined in the RHP.

 

NTPC Green Energy financial details

According to the RHP, the profit attributable to the owners of the parent company stood at Rs 176.65 crore in the first half of the current fiscal year (H1FY25), reflecting a decline of 15.13 per cent from Rs 208.15 crore reported during the same period in the previous fiscal year.

 

The company's revenue from operations remained steady at Rs 1,082.29 crore in H1FY25, compared to Rs 1,008.32 crore reported in H1FY24.

 

Total expenses grew 19.54 per cent  to Rs 885 crore in H1FY25 from Rs 740.33 crore during the same period in the previous fiscal year.

 

About NTPC Green Energy

NTPC Green Energy is a wholly owned subsidiary of NTPC, a ‘Maharatna’ central public sector enterprise. It 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 (Source: CRISIL Report, November 2024).

 

NTPC Green Energy generates revenue by selling solar and wind power through Power Purchase Agreements with Indian government agencies and public utilities. Its renewable energy portfolio includes solar and wind power assets with an operational capacity of 3,220 MW of solar projects and 100 MW of wind projects across six states as of September 30, 2024.