Going by the GMP trends, the stock is expected to see a flat listing at the bourses. The IPO, which received a subscription of nearly 2.4 times, was priced at Rs 108 at the upper end.
The issue got decent demand from institutional and retail investors, despite the selloff mood in the market and expensive valuations while non-institutional investors stayed back with low interest.
Analysts believe NTPC Green Energy is an opportunity to invest in a leading player of India’s renewable energy sector, backed by the formidable resources and expertise of NTPC as a long term strategy only.
“With ambitious renewable energy targets, the company is well-equipped to capitalize on the increasing demand for sustainable energy solutions. NTPC Green’s strategic expansion into green hydrogen, green chemicals and battery storage further enhances its growth prospects, positioning it at the forefront of India’s energy transition,” said Prashanth Tapse of Mehta Equities.
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“Investors should consider the company to hold it for long term despite knowing short term volatility in the markets and competitive pressures in the sector. For non-allotted investors, we advise to accumulate if the listing is around the issue price,” Tapse added.
The proceeds from the Rs 10,000 crore IPO will be used for investment in its wholly-owned subsidiary, NTPC Renewable Energy, for the repayment of debt and other general corporate purposes.
NTPC Green, a subsidiary of NTPC, is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of September 24 and power generation in FY24.
Its renewable energy portfolio encompasses both solar and wind power assets with presence across multiple locations in more than six states which helps mitigate the risk of location-specific generation variability. The operational capacity was 3,220 MW of solar projects and 100 MW of wind projects as of September 2024.
NTPC Green Energy’s revenue from operations has grown at a CAGR of 46.82% from Rs 910.42 crore in fiscal 2022 to Rs 1,962.6 crore in fiscal 2024. Profit after tax grew at a CAGR of 90.75% from Rs 94.74 crore in FY22 to Rs 344.72 crore in FY24.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)NTPC Green Energy, which brought its marquee IPO to the Street last week, will see its shares get listed on the exchanges today. Ahead of the listing, the company’s shares are trading with a GMP of Rs 1 in the grey market, which was unchanged from the past few days.