NTPC Green Energy's Ambitious IPO: A Boost to India's Renewable Goals

NTPC Green Energy Ltd, a subsidiary of NTPC Ltd, has launched its IPO, aiming to raise Rs 10,000 crore. Priced between Rs 102-108 per share, the IPO supports NTPC's renewable ambitions and marks NGEL as a key player in India's clean energy transition with a target of 19 GW by FY27.

The Initial Public Offering (IPO) of NTPC Green Energy Ltd (NGEL), a subsidiary of the Maharatna public sector enterprise NTPC Ltd, officially opened for subscriptions today. With a price band set between Rs 102-108 per share, the offering will be available until this Friday, aiming to raise Rs 10,000 crore. The company is scheduled to debut on stock exchanges on November 27.

NTPC shareholders have a special quota for applications, along with NTPC employees, who enjoy a separate allocation. The IPO requires a minimum lot size of 138 shares, with shares expected to be deposited into demat accounts by November 26. NGEL intends to expand its renewable capacity to 19 GW by FY27, which supports India's pursuit of clean energy. This initiative forms part of NTPC Ltd's plan for 60 GW of renewable capacity by 2032, enhancing NTPC's contribution to India's power generation, which currently stands at 24%.

By September 2024, NGEL will have operational 3,220 MW of solar and 100 MW of wind power. The company has a strong pipeline with 13,576 MW of contracted projects and 9,175 MW underway, distributed across major Indian states like Rajasthan, Gujarat, Tamil Nadu, and Uttar Pradesh. This distribution reduces the risk of location-specific generation variability, ensuring reliable and stable energy supply.

NGEL leverages NTPC's expertise in project development and enjoys robust financial support that ensures access to low-cost capital, which is significant in the capital-intensive renewable sector. Furthermore, NGEL owns significant lands, both freehold and leasehold, aiding future expansion. Beyond conventional renewable energy, NGEL is delving into green hydrogen, chemicals, and battery storage solutions, aligning with India's sustainability goals and the global clean energy market.

Analysts are optimistic about the company's long-term growth, valuing NGEL at an FY24 EV/EBITDA multiple of 53.4x at the upper IPO price band. Investors seeking sustainable, profitable ventures are recommended to subscribe, given the company's strategic focus and market competitiveness. (ANI)

(With inputs from agencies.)