NTPC Green Energy: 8 Things to Know About this IPO

NTPC Green Energy IPO is generating significant interest among investors due to its strong positioning in the renewable energy sector and the backing of its parent company, NTPC Limited. This IPO offers a unique opportunity to invest in India's clean energy future.

But before you invest in this IPO, here's everything you need to know.

8 Key Points to Know About NTPC Green Energy

• Government-Backed

NTPC Green Energy is a wholly-owned subsidiary of NTPC Limited, a government entity, which provides financial stability and credibility.

• Strong Project Portfolio

The company operates a portfolio of 14,696 MW, including 3,071 MW from operational solar projects, showcasing its established footprint in renewable energy.

• Rapid Expansion Plans

NTPC Green Energy is expanding its operations with 31 renewable projects under development across seven states, totalling 11,771 MW.

• Proven Industry Expertise

The NTPC brand is known for its extensive experience in large-scale project execution, which adds to the reliability of NTPC Green Energy’s projects.

• Focus on Sustainability

As part of NTPC Limited, NTPC Green Energy is focused on reducing carbon emissions by promoting renewable energy, aligning with global environmental goals.

• Strong Off-Taker Relationships

With 15 off-takers across multiple projects, NTPC Green Energy has secured stable demand for its energy outputs.

• Experienced Workforce

The company’s skilled workforce and contract labor are well-versed in renewable project execution, ensuring quality and efficiency in operations.

• High Demand in Clean Energy Market

India’s push towards clean energy presents an expanding market for NTPC Green Energy, giving it growth potential over the long term.

About NTPC Green Energy

Incorporated in April 2022, NTPC Green Energy Limited is dedicated to renewable energy projects, focusing on organic and inorganic routes to expand its clean energy footprint. With a robust portfolio comprising solar and wind projects, NTPC Green Energy aims to support India's renewable energy transition. The company’s operations span six states, highlighting its commitment to sustainability and energy independence.

Key Details of the IPO

• IPO Date: November 19, 2024 - November 22, 2024
• Price Band: ?102 to ?108 per share
• Lot Size: 138 shares per lot
• Total Issue Size: 925,925,926 shares aggregating to ?10,000 crores

Financials of NTPC Green Energy

NTPC Green Energy has shown strong operational metrics in recent years. As of September 2024:

• Assets: ?32,408.30 crore
• Revenue: ?1,132.74 crore
• Profit After Tax: ?175.30 crore
• Net Worth: ?8,189.18 crore
• Reserves and Surplus: ?596.08 crore

Objectives of the IPO

The primary objectives of NTPC Green Energy's IPO include:

• Investment in the wholly owned subsidiary, NTPC Renewable Energy Limited (NREL), for repayment/prepayment, in full or in part of certain outstanding borrowings availed by NREL
• General corporate purpose

Conclusion

The NTPC Green Energy IPO offers an attractive entry point for investors seeking exposure to the renewable energy sector, backed by the reliability of NTPC Limited. With a well-diversified project portfolio and significant growth potential, NTPC Green Energy is well-positioned to play a pivotal role in India’s transition to clean energy.