NTPC Green Energy IPO Membership Status: Despite recent IPO fatigue, the NTPC Green Energy IPO seems to have caught the attention of retail investors, as the segment was fully booked within hours of its launch. The NTPC Green Energy IPO appears to be on track to be completed by the end of the last bidding day, Friday, November 22.

Check NTPC Green Energy IPO Day 2 Live Updates

On Tuesday, November 19, NTPC Green Energy, NTPC’s sustainable energy unit, made an initial public offer for public subscription. Before the IPO, NTPC Green Energy had raised ₹3,960 crore from anchor investors.

As of 3:21 PM on the second day of bidding, the public issue was subscribed 0.88 times, the retail portion of the public issue was subscribed 2.24 times, the NII segment was subscribed 0.30 times, and the QIB segment was booked 0.74 times. Times

NTPC Green Energy IPOOwned by the Government of India (GoI), saw a 33% subscription rate on its opening day. Retail investors oversubscribed the offer by 1.33 times. On the first day, non-institutional investors (NII) subscribed 16% of the shares on offer, while there was no bid from qualified institutional buyers (QIBs). 17% of employee shares were reserved, and 57% of the share class was filled.

NTPC Green Energy, a subsidiary of NTPC Ltd., holds the distinction of being the leading public sector company in renewable energy (excluding hydro) for FY 2024 based on operational capacity and power generation.

According to RHP, Adani Green Energy Ltd and ReNew Energy Global PLC are among the company’s comparables with P/Es of 259.83 and 47.05 respectively.

NTPC Green Energy IPO Overview

Indices Securities

The brokerage report indicated that NTPC Group plans to increase its non-fossil fuel capacity to 60 GW by 2032. The expansion will value the company at EV/MW ratios of 15.6x, 8.5x, and 4.9x for FY25E, FY26E, and FY27E, respectively. Strong execution capabilities supported by a strong parent company, favorable industry growth trends, and involvement in Battery Energy Storage Systems (BESS) bodes well for future growth. However, the IPO valuations are considered high compared to its listed competitors, which are trading in the EV/EBITDA range of 38-40x. Consequently, the brokerage has given the IPO a “Subscribe for Long” recommendation.

SBICAP Securities

The brokerage noted that, based on their calculations, the upper price band for the issue equates to FY25E/FY26E/FY27E EV/EBITDA multiples of 35.3x/18.3x/10.1x and EV/MW. ₹16.8 crore/9.0 crore/5.1 crore respectively. The company exhibits significant growth potential over the medium term, with revenue/EBITDA/PAT expected to expand at CAGRs of 79.0%/117.2%/123.8%. ₹11,250 crore/9,563 crore/1,980 crore in the period FY24-27E. The brokerage has advised investors to subscribe to the issue at the cut-off price for long-term gains.

Details of NTPC Green Energy IPO

NTPC Green Energy IPO, estimated ₹10,000 crore, comprising only newly issued equity shares, with no element of offer for sale (OFS).

The funds raised by this new issue, Rs ₹7,500 crore, will be earmarked for investment in NTPC Renewable Energy Limited (NREL), for repayment or prepayment of certain existing debts of NREL, and for general corporate purposes.

The lead managers overseeing the offer are IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited, while KFin Technologies Limited will act as the registrar of the offer.

NTPC Green Energy IPO GMP Today

NTPC Green Energy IPO GMP is +0.80 today. This indicated that NTPC Green Energy’s share price was trading at a premium. ₹0.80 in the gray market, according to InvestCargin.com.

Taking into account the upper end of the IPO price band and the current premium in the gray market, the estimated share price of NTPC Green Energy has been quoted. ₹108.8 percent, which is 0.74% higher than the IPO price of ₹108.

According to recent 17 sessions of gray market activities, current GMP ( ₹0.80) points downward. Minimum GMP recorded. ₹0, while the maximum GMP was reached. ₹25, according to experts at investcargin.com.

The ‘grey market premium’ indicates the willingness of investors to pay more than the issue price.

Disclaimer: The views and recommendations given above are those of individual analysts, experts and broking companies and not of Minutes. We advise investors to consult certified experts before making any investment decision.