NTPC Green Energy joins Rs 1 trillion market-cap club on debut

At 12:19 pm; NTPC Green market-cap stood at Rs 1.02 trillion, while the stock had surged to Rs 121.15 - up 12 per cent when compared to its issue price of Rs 108 per share.

NTPC Green Energy (NGEL) has joined the elite club of companies having a market capitalisation (market cap) of Rs 1 trillion on its listing day, as shares of the state-owned power generation company rallied to Rs 122.75, a 14 per cent premium over its issue price.

 

At 12:19 pm; with Rs 1.02 trillion market cap NGEL was quoting at Rs 121.15, up 12 per cent over its issue price of Rs 108 per share. In comparison, the BSE Sensex was up 0.12 per cent at 80,102. The counter has seen huge trading volumes with a combined 286.71 million shares changing hands on the NSE and BSE. Earlier today, the company’s shares posted a muted start with listing at Rs 111.60, a 3.33 per cent, against its issue price on the BSE. 

 

 

NGEL raised Rs 10,000 crore through the initial public offer issue. The proceeds from the fresh issue to the extent of Rs 7,500 crore will be used for investment in its wholly-owned subsidiary, NTPC Renewable Energy (NREL) for repayment, in full or in part of certain outstanding borrowings availed by NREL; and general corporate purposes.

 

Most of the brokerages had assigned a “Subscribe” rating for the issue on a long-term investment basis, considering its strong brand recall, superior execution capabilities, portfolio expansions, investment in nextgen energy solutions (Battery Energy Storage Systems & Green Hydrogen derivatives), and promising industry outlook.

 

NGEL, a subsidiary of NTPC, India’s largest integrated energy company with over 76GW of installed capacity, is among the top 10 renewable players in India. NGEL focuses exclusively on renewable energy which includes solar, wind, and solar-wind hybrid power projects.

 

According to ICICI Securities, the company commands in excess of 25GW of portfolio and pipeline across solar and wind projects diversified across geographies and offtakers. The company has already contracted and awarded projects to the tune of Rs 13500 MW. The company is promoted by NTPC (largest power generator in the country, which has extensive experience in executing large-scale projects.

 

The company will also benefit NTPC’s financial strength and help access low & competitive cost of funds which will lead to better project level internal rate of returns (IRR’s), the brokerage firm said.

 

Meanwhile, at the forefront of NTPC’s renewable transition, NGEL targets 60GW of renewable energy capacity by 2032F, scaling operational capacity from 3.3GW in Sep 2024 to 6GW by FY25F, 11GW by FY26F, and 19GW by FY27F. It plans to add 8GW annually from FY28F to FY32F, aligning with NTPC’s broader goals.

 

India’s renewable energy capacity has grown five-fold over the past decade to 201GW, with solar contributing 44 per cent (89GW). The government’s target of 450GW of renewable capacity by 2030F, supported by inter-state transmission charge waivers, renewable purchase obligations (RPOs), and a Rs 19,700 crore Green Hydrogen Mission, creates robust growth opportunities. Additionally, reducing solar module prices at US$0.09 per watt-peak and rising hybrid project tariff (Rs 3.15-3.20/kWh) improve project viability and sectoral profitability, analysts at InCred Equities said in the IPO note.

 

NGEL has also signed a JV Agreement with MAHAPREIT to implement Renewable Energy Park projects, including solar, wind, and hybrid energy, with a capacity of up to 10 GW in Maharashtra. Additionally, it has signed an JV Agreement with Rajasthan Rajya Vidyut Utpadan Nigam Limited for the development of renewable energy projects (solar, wind, and hybrid), with or without storage up to a total capacity of 25 GW. This JV Agreement also includes the production of green hydrogen and its derivatives, such as green ammonia and green methanol, with a capacity of up to 1 million MT through a suitable model, ICICI Securities said.    4 i-banks pocket Rs 7.1 cr for NTPC Green IPO 

The four investment banks that handled NTPC Green Energy’s share sale pocketed just Rs 7.1 crore — 0.07 per cent 

of the issue size. The firm’s Rs 10,000 crore IPO was this year’s third biggest after Hyundai Motor India and Swiggy. For comparison, Hyundai India paid Rs 493 crore to the five i-banks that handled its share sale, while Swiggy shelled out Rs 275 crore for handling its Rs 11,327-crore share sale.