The Initial Public Offering (IPO) of NTPC Green Energy Ltd (NGEL), a subsidiary of NTPC Ltd, launched for subscription today, Tuesday. This IPO, aimed at raising ₹10,000 crore, will remain open for subscription until Friday. NGEL, which is part of the state-owned NTPC Ltd, is offering shares at a price range of ₹102-108 per share. The company plans to list on the stock exchanges on November 27.
Special Quotas for NTPC Shareholders and Employees
NTPC shareholders are eligible to apply for the IPO under a special shareholder quota, while NTPC employees also have a separate quota for their applications. The lot size for the IPO is 138 shares, and the shares will be transferred to demat accounts on November 26.
NGEL’s Renewable Energy Goals
NGEL aims to expand its operational renewable energy capacity to 19 GW by FY27, as part of India’s clean energy transition. This IPO supports NTPC Ltd’s broader vision to achieve 60 GW of renewable energy capacity by 2032. NTPC currently contributes 24% of India’s total power generation, with NGEL playing a key role in advancing its renewable energy plans.
As of September 2024, NGEL has 3,220 MW of solar power and 100 MW of wind power in operation. The company has a strong pipeline of projects, with 13,576 MW already contracted and an additional 9,175 MW in development. NGEL’s renewable projects are spread across major states such as Rajasthan, Gujarat, Tamil Nadu, and Uttar Pradesh, helping to minimize risks associated with location-based generation variability.
Strong Foundation and Future Expansion
NGEL benefits from NTPC’s extensive experience in project development. The company owns 8,900 acres of freehold land and 45,700 acres of leasehold land, providing a strong foundation for future growth. The company is also exploring advanced energy solutions such as green hydrogen, green chemicals, and battery energy storage systems, aligning with India’s sustainability goals and capitalizing on emerging global clean energy opportunities.
Financial Backing and Market Competitiveness
NGEL enjoys NTPC’s robust financial support, allowing access to low-cost capital. This advantage is vital in the capital-intensive renewable energy sector. Analysts have expressed confidence in NGEL’s long-term growth prospects, with the company valued at an FY24 EV/EBITDA multiple of 53.4x at the upper price band of ₹108 per share. Investors looking for long-term, sustainable growth opportunities are encouraged to subscribe to the IPO.