New IPO Alert: NTPC Green Energy IPO GMP Mainline

NTPC Green Energy IPO GMP is ₹3 on 14 November. NTPC Green Energy IPO date: 19 Nov to 22 Nov. NTPC Green Energy IPO GMP percentage 2.78%. NTPC Green Energy IPO Price Band: Floor Price ₹102 and Cut-off Price: ₹108

NTPC Green Energy IPO Dates

1. Open Date: Tuesday, November 19
2. Closing Date: Friday, November 22
3. Allotment Date; Monday, November 25
4. Refunds Date: Tuesday, November 26
5. Demat Transfer: Tuesday, November 26
6. Listing Date: Wednesday, November 27
7. NTPC Green Energy IPO GMP ₹3 on 14 November

NTPC Green Energy IPO GMP & Estimated Gain

NTPC Green Energy IPO GMP is ₹3. NTPC Green Energy IPO GMP percentage is 3%. Estimated Gain for 1 lot is ₹414.00. Estimated Profit Retail: ₹414. Estimated Profit HNI as per NTPC Green Energy IPO GMP is ₹5,796.00

The GMP of NTPC Green Energy IPO is an informal indicator of how the IPO might perform once it’s listed on the stock exchanges. Essentially it shows the price investors are willing to pay for the IPO shares in an unofficial or ‘Grey’ market, which operates outside formal exchanges and regulatory oversight. 

In this case, the NTPC Green Energy IPO GMP is ₹3. It means there is a 2.78% premium over the IPO cut-off price or upper issue price. This suggests that some investors believe the shares may list at a price slightly above the cut-off price. In indicates positive demand. 

However, This GMP value is speculative and based on the market rumors. It is not guaranteed the actual listing price and should not be relied on for investment decisions. NTPC Green Energy IPO GMP is only a rough gauge of market sentiment and not an official estimate. Investors should consider it as a piece of additional information rather than a definitive prediction, and the source disclaims any responsibility for investment choice on GMP.

About NTPC Green Energy IPO:

NTPC Green Energy Limited (NGEL), a wholly-owned subsidiary of NTPC Ltd, plays a significant role in India’s renewable energy sector. Founded in April 2022, NTPC Green Energy Limited is focused on developing solar and wind energy projects. The company seeks growth through both organic expansion and strategic acquisitions. It is supported by NTPC Limited, and the company leverages its parent company’s expertise in executing large-scale projects. This helps it build strong relationships with key stakeholders, including off-takers and suppliers.

NGEL is expanding its presence in the renewable energy market with a diverse portfolio of operational and contracted projects. As of June 2024, NGEL is working on 31 renewable energy projects across seven states. These projects underline India’s commitment to increasing its renewable energy capacity. The company employs 234 skilled workers, with an additional 45 contract laborers, equipping it with the human resources necessary to meet its ambitious targets in the renewable energy sector. 

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NTPC Green Energy IPO GMP & basic details:

Face Value: The nominal or base value of each share is ₹10.

Issue Price: The shares are between ₹102 and ₹108 per share.

Lot Size: The lot size of the IPO is 138 shares

Issue Size: The total issue size of the IPO is ₹10,000 Crore.

Fresh Issue: The entire amount of ₹10,000 crores comes from the fresh issue of shares.

Offer for sale: No shares are being offered by existing shareholders.

Issue type: The IPO follows the Book Built Issue format allowing pricing based on the demand.

Listing at: The shares will be listed on BSE and NSE

Employee Discount: Employees are eligible for a discount of ₹5 per share.

Registrar: Kfin Technologies Limited will handle the IPO registration.

Website: Further information is found on the official website.NGEL dot in

This NTPC Green Energy IPO stands out to investors because it consists entirely of the Fresh Issue of shares, with no offer for sale (OFS) from existing shareholders. This approach means that all ₹10,000 crore raised will go directly to the company, likely to fund growth and development, rather than to existing investors cashing out their holdings. For investors like us, this setup can be attractive as it reflects a commitment to using the funds for the company’s further expansion and operations, potentially enhancing long-term value. 

NTPC Green Energy IPO Issue Objectives:

The NTPC Green Energy IPO’s primary objectives focus on strategic financial support and corporate needs. First, the funds will be invested in NTPC’s wholly-owned subsidiary, NTPC Renewable Energy Limited (NREL), specially to repay or prepay certain outstanding loans that NREL has taken. This investment aims to strengthen NREL’s financial position by reducing its debt burden. Additionally, a portion of funds will go towards general corporate purposes, supporting the company’s overall operational and financial flexibility. 

NTPC Green Energy IPO Key Performance Indicators

The Red Herring Prospectus provides us a snapshot of the key financial performance indicators for NTPC Green Energy IPO GMP etc. as of September 30, 2024, likely intended for potential investors considering the company’s upcoming IPO. Here is a breakdown of each indicator: 

• 1] ROE (Return on Equity): 7.39% – This shows the company’s profitability to shareholders’ equity. It indicates a modest return for equity investors.
• 2] ROCE (Return on Capital Employed): Not Mentioned but would typically reflect the company’s efficiency in using its capital
• 3] Debt/Equity Ratio: 1.91 – This is a measure of the company’s financial leverage. A ratio of 1.91 indicates that NGEL has almost twice as much debt as equity. It suggests a moderate to high level of leverage. 
• 4] RoNW (Retrun on Net Worth) 2.14% – This shows the company’s return on the shareholders’ net worth. And it is relatively low.
• 5] P/BV (Price to Book Value): 9,89 – This valuation metric indicates that NGEL is valued at almost 10 times its book value, which could reflect investor confidence in its growth potential but may also suggest a high valuation.
• 6] PAT Margin: 16.2% – The Profit After Tax margin shows the percentage of revenue that remains as profit after all expenses. It indicates a healthy profitability level. 
• 7] Pre EPS (earning Per Share before IPO): ₹0.46 – This is the company’s earnings per share before the IPO. It reflects the profitability per share. 
• 8] Post-EPS (Earnings Per Share after IPO): 0.42 – The EPS decreases slightly post-IPO, likely due to an increase in outstanding shares.
• 9] Pre P/E (Price to Earnings Ratio before IPO): 234.97 – This high P/E ratio before the IPO suggests a significant premium on the company’s earnings, possibly indicating high investors’ expectations.
• 10] Post P/E (Price to Earnings Ratio after IPO) 259.56 – The P/E ratio increases post-IPO. It reflects the valuation with the new shareholding structure and the market’s high expectations for future growth.

Additional Note: The NTPC Green Energy IPO market capitalization is ₹91,000 Crore. The EPS figures are calculated based on pre and post-issue shareholdings as of the date of the Red Herring Prospectus. These indicators offer insights into NGEL’s valuation, leverage, and profitability, giving investors an overview of the company’s financial health and expectations in the market. 

NTPC Green Energy IPO Peer Competitors

NTPC Green Energy IPO Strength and Risks

Strength Factors

1] NTPC Limited Support: This company benefits from the robust backing of NTPC Ltd, which offers a strong foundation in terms of project execution experience and reliable financial support. NTPC’s involvement brings stability and creditability, making this company’s ventures in renewable energy more viable and attractive.

2] Diverse Portfolio: The company maintains a well-diversified energy portfolio with 14,696 MW in solar and wind projects. This diversification helps to spread risk, as it reduces dependency on a single type of renewable energy and mitigates the potential geographic and off-taker risks. By having varied sources, the company is more resilient to fluctuation in any one sector.

3] Experienced Team: The company boasts a team with extensive expertise in renewable energy project development and management. Their skilled workforce specializes in handling complex energy projects, ensuring the company is well-equipped to handle challenges and innovate within the renewable sector. 

Risk Factors

1] Revenue Concentration Risk: A significant risk for the company is its reliance on a limited number of major clients. In particular, the top five off-takers contribute to 87% of its revenue. This dependency creates a potential vulnerability loss of a major client could have a substantial impact on revenue streams and financial stability.

2] Supply Chain Dependencies: The company’s reliance on critical components, such as solar modules and wind turbines, poses a supply risk. Any disruption or price fluctuations in obtaining these components could lead to delays and increased costs, impacting the timelines and profitability of projects.

3] Project Delays and Cost Overruns: The renewable energy sector often faces challenges related to project delays and cost overruns. This company, too, is vulnerable to these issues, which can affect cash flows and overall profitability. Unexpected delays may strain resources and lead to financial setbacks. 

NTPC Green Energy IPO GMP Final Lines:

NTPC Green Energy IPO GMP is still below 20%. It is ₹3 on 14 November. It means NTPC Green Energy IPO GMP is near about 3%. NTPC Green Energy IPO GMP may increase in the upcoming days. We will continue to track and update the latest NTPC Green Energy IPO GMP from time to time.