The NTPC Green Energy IPO is creating a buzz in the investment world, and for good reason. This highly anticipated IPO is set to raise ₹10,000 crore, with investors and analysts keeping a close watch on its progress. Let’s dive into the key details and why this could be a smart investment opportunity.
NTPC Green Energy IPO Details
NTPC Green Energy Limited (NGEL) is a wholly-owned subsidiary of NTPC, one of India’s largest power producers. This company is focused on renewable energy projects like solar and wind power, making it a key player in India’s transition towards cleaner energy. NGEL currently operates 3.2 GW of renewable energy projects and plans to scale up its capacity significantly in the next decade.
- IPO Size: ₹10,000 crore
- IPO Opening Date: Expected in the first week of November 2024
- Type: Entirely a fresh issue with no offer-for-sale (OFS) component
- Purpose: ₹7,500 crore will be used to repay loans of NTPC Renewable Energy Ltd (NREL), while the remaining funds will be for corporate purposes.
NTPC Green Energy IPO Investment Advice
NTPC’s renewable energy business is expected to perform at a premium compared to its coal-based operations. Investors holding NTPC shares may benefit from this upside, especially since the IPO will have a special shareholders’ quota, boosting allotment chances for existing shareholders.
Why Investors Are Bullish on NTPC Green Energy?
Analysts are optimistic about the NTPC Green Energy IPO. According to a report by Jefferies, NTPC Green could see a 5-11% upside in its share price, assuming a 10-15% stake dilution. The company’s renewable energy capacity is set to increase from 3.2 GW to 60 GW by 2032, reflecting an impressive growth trajectory.
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Key Risks to Consider
While NTPC Green Energy shows promising growth, investors should be aware of certain risks:
- Under-recovery: If renewable energy projects underperform, this could affect profitability.
- Execution Delays: Any delay in project execution could impact the company’s growth plans.
How to Boost Your IPO Allotment Chances?
Since the NTPC Green Energy IPO will have a shareholders’ quota, buying NTPC shares now could increase your chances of getting an allotment in the IPO. Make sure you hold NTPC shares as of the date of the RHP filing, which will be announced soon.
NTPC’s Roadmap for Renewable Energy
NTPC is not just dabbling in renewable energy; it has ambitious plans to reach 60 GW of renewable capacity by 2032. As of now, the company has 3.2 GW in operation, with another 28 GW in the pipeline. This positions NTPC as a significant player in India’s renewable energy landscape, which is rapidly expanding.
India’s Renewable Energy Growth
India’s renewable energy sector is growing at a remarkable pace. By March 2024, India’s installed renewable energy capacity reached 191 GW, with solar energy being the primary driver. This places India among the top countries globally in terms of renewable energy capacity.
