NTPC Green IPO Listing Today : NTPC Green Energy, a government company in the renewable energy sector, has had a slow entry in the stock market today. The company’s stock was listed on BSE at a price of Rs 111.60, while the IPO price was Rs 108. In this sense, the stock has given 3 percent return to successful applicants on its debut. The IPO also received a lukewarm response from investors and was subscribed 2.55 times. The size of the IPO was Rs 10,000 crore. This government company is a subsidiary of already listed PSU NTPC.
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How was the response from investors?
According to BSE exchange, the IPO of NTPC Green Energy was subscribed 255 percent or 2.55 times in three days. About 75 percent of the public issue of this company was reserved for qualified institutional buyers and this portion was filled 351 percent or 3.51 times. 15 percent of the IPO was reserved for non-institution investors and it was filled 0.85 times or 85 percent. In this, 10 percent share was reserved for retail investors and it was filled 3.59 times or 359 percent overall. Shares worth Rs 200 crore were reserved for the employees. Eligible employees also got a discount of Rs 5 on each share in the purchase of shares. The reserve portion for these was filled 83 percent or 0.83 times.
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Company growth strategy
Brokerage house SBI Securities says the company will expand its operating capacity to 6, 11 and 19 GW by FY25E, FY26E and FY27E, from 3.3 GW by September 2024. The company has the potential for rapid growth in the mid-term. The company’s Revenue, EBITDA and PAT are expected to grow at 79.0%, 117.2% and 123.8% CAGR in the FY24-27E period to Rs 11,250 crore, Rs 9563 crore and Rs 1980 crore respectively.
• The company continues to expand its project pipeline through prudent bidding and strategic joint ventures with PSUs and private corporates.
• The company’s focus is on projects in new energy solutions like green hydrogen, green chemicals and battery energy storage systems (BESS).
• Continuous reduction in efficiency and cost of project execution and operation and maintenance.
• Continues to contribute to India’s sustainability efforts.
• Strong product portfolio with diversification across different geographies and off-takers
• Experience in renewable energy project execution.
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What is the business of the company?
NTPC Green Energy is the largest public sector renewable energy undertaking (except hydro) in terms of operational capacity till June 2024 and power generation in FY 2024. NTPC Green’s portfolio comprised 14,696 MW, which included operational projects of 2,925 MW and contracted and awarded projects of 11,771 MW. The company’s renewable energy portfolio includes solar and wind energy assets located at multiple locations in more than 6 states, which helps reduce the risk of location-specific output variability.
NTPC Green Energy’s revenue from operations has grown at a CAGR of 46.82% from Rs 910.42 crore in FY2022 to Rs 1,962.6 crore in FY2024. The company’s net profit grew at a CAGR of 90.75% from Rs 94.74 crore in FY22 to Rs 344.72 crore in FY24.
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