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Investors Eye NTPC Green Energy IPO with Promising Subscription Updates

The company's green energy subsidiary, NTPC Green Energy Limited, is also known as NGEL, which has of late been in the headlines for its recent stock offering. Started on November 19, 2024, the issue achieved 33% of subscribers on Day 2. It has triggered a lot of commotion in the green energy space. These shares are going to be listed on the stock market November 27, 2024 immediately after the close of the Initial Public Offering, or IPO, on November 22, 2024.

The ocean of solar and wind projects for which NGEL is raising ₹102 to ₹108 per share from an IPO speaks to the commitment of the company towards sustainable energy. The debt of its subsidiary, NTPC Renewable Energy Ltd, will be paid off with ₹7,500 crores of this amount. Rest of the amount will go into general corporate purposes.

However, the IPO's GMP indicates a growth of a mere 0.74%, which perhaps speaks cautious sentiments among investors. Analysts say that, after all, trends of GMPs are cyclically related to market conditions and do not always augurate the value an IPO fetches.

About NGEL:

NTPC Green Energy reported revenue of ₹19.6 billion for FY24 supported by an EBITDA margin in excess of 85%. Its operational capacity stands at 3.3 GW and is expected to triple by FY27. A shift to propel towards new energy solutions like green hydrogen and chemical storage sealed its position as one of the critical players in India's green energy goals.

Analyst Recommendations

Major broker houses have long-term 'buy' recommendations on the IPO for SBI Securities and Reliance Securities, among others. They said that the underlying themes to invest in NGEL are its robust parent backing, strategic market positioning, and alignment with the net-zero ambitions of India.

The NTPC Green Energy IPO is the other bold step in India's renewable energy journey that sees attention both from retail and institutional investors.