The much-awaited NTPC Green Energy IPO is launching this week, with a focus on expanding its renewable energy portfolio. Here’s a comprehensive breakdown of the IPO details, including important dates, pricing, subscription options, and potential gains.
Key IPO Details:
• IPO Open Date: November 19, 2024
• IPO Close Date: November 22, 2024
• Price Band: ₹102 - ₹108 per share
• Lot Size: Minimum application is for 138 shares, with bids to be made in multiples of this.
• Issue Size: Approx. ₹10,000 crore, involving the issuance of about 925.93 million equity shares.
• Market Capitalization Post-IPO: Estimated at around ₹91,000 crore.
• Listing Date: Expected on November 27, 2024, on both NSE and BSE .
Purpose of the IPO:
NTPC Green Energy aims to use the proceeds for:
1. Investment in its subsidiary, NTPC Renewable Energy Ltd., with a focus on repaying or prepaying existing borrowings.
2. General corporate purposes to support future growth.
Investor Reservation:
• Retail Investors: Up to 10% of the shares.
• Qualified Institutional Buyers (QIBs): Minimum 75% of the issue.
• Non-Institutional Investors (HNIs): Up to 15%.
• Employee Reservation: ₹200 crore worth of shares reserved with a ₹5 discount per share .
Grey Market Premium (GMP):
As of the latest updates, the Grey Market Premium (GMP) is fluctuating, signaling a potential listing gain. Investors should keep an eye on the GMP as it may provide an indicator of market sentiment leading up to the listing date .
Financial Performance:
• FY23 Net Profit: ₹171.23 crore on a total income of ₹170.63 crore.
• FY24 Net Profit: ₹344.72 crore, demonstrating strong growth.
• H1 FY25 (Ending Sept 30, 2024): Net profit of ₹175.30 crore, signaling continued robust performance.
The company’s financials indicate a positive trend, backed by a diversified portfolio in solar and wind projects .
Apply or Avoid?
Pros:
• Strong backing from NTPC Ltd., a reputable PSU.
• Increasing focus on renewable energy, aligned with government policies.
• Financial growth with significant future projects in the pipeline.
Cons:
• Market volatility could affect listing gains.
• Competition in the renewable energy sector might impact long-term profitability.
Given its robust financials and strong future growth outlook, the IPO could be attractive for investors with a medium to long-term horizon. However, market participants should consider current market conditions and Grey Market Premium trends before deciding.
Important Dates:
• Allotment Finalization: November 25, 2024
• Refunds Initiated: November 26, 2024
• Shares Credited to Demat Account: November 26, 2024
• Listing Date: November 27, 2024 .
Disclaimer:
The information provided here is based on publicly available sources and is intended for informational purposes only. Investors are advised to perform their own research or consult financial advisors before making investment decisions. This article does not constitute investment advice and is not responsible for any financial loss incurred based on the information provided a.