NTPC Green Energy IPO Lists at 3.33% Premium, Surges 9.40%

NTPC Green Energy Limited, incorporated in April 2022 as a wholly-owned subsidiary of NTPC Limited, made its market debut on Wednesday, 27th November 2024, with its shares listing on both BSE and NSE. The company operates 3,071 MW of solar and 100 MW of wind projects across six states.

Listing Details

• Listing Time & Price: At 10:00 AM IST, NTPC Green Energy shares listed at ₹111.60 on BSE and ₹111.50 on NSE, marking a positive start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a modest premium over the IPO issue price. NTPC Green had set its IPO price band from ₹102 to ₹108 per share, with the final issue price being fixed at the upper end of ₹108.
• Percentage Change: By 10:08 AM IST, the stock was trading at ₹118.15, up 9.40% over the issue price, showing strong momentum post listing.

First-Day Trading Performance

• Price Range: Hit a high of ₹118.75 and low of ₹111.60 in early trading, with VWAP at ₹114.85.
• Market Capitalisation: As of 10:08 AM IST, the company's market capitalisation stood at ₹99,641.35 crore, with free float market cap at ₹6,974.89 crore.
• Trading Volume: The traded volume was 102.07 lakh shares with a traded value of ₹117.24 crore, with 100% deliverable quantity.

Market Sentiment and Analysis

• Market Reaction: Strong buying interest post modest listing, with stock gaining significant ground in early trading.
• Subscription Rate: The IPO was oversubscribed by 2.55 times (as of November 22, 2024, 6:19:08 PM), with retail investors leading at 3.59 times subscription, followed by QIBs at 3.51 times, and NIIs at 0.85 times.
• Grey Market Premium: The shares had a GMP of ₹1 before listing, indicating muted expectations.

Growth Drivers and Challenges

Expected drivers of future performance:

• Strong parentage of NTPC Limited
• Large portfolio of 14,696 MW projects
• Extensive experience in project execution
• Strong relationships with off-takers
• Strategic government backing

Potential challenges:

• Aggressive valuation concerns
• High debt-to-equity ratio of 1.91
• Project execution risks
• Regulatory changes
• Renewable sector competition

Utilisation of IPO Proceeds

NTPC Green plans to use the funds for:

• Investment in NTPC Renewable Energy Limited
• Repayment of NREL borrowings
• General corporate purposes

Financial Performance

The company has shown strong growth:

• Revenue increased by 1094.19% to ₹2,037.66 crore in FY2024 from ₹170.63 crore in FY2023
• Profit After Tax rose by 101.32% to ₹344.72 crore in FY2024 from ₹171.23 crore in FY2023
• H1 FY2025 showed revenue of ₹1,132.74 crore with PAT of ₹175.30 crore

As NTPC Green Energy begins its journey as a listed entity, market participants will closely monitor its ability to execute its large project pipeline and maintain growth momentum. The strong post-listing performance suggests positive investor sentiment towards the company's prospects in the renewable energy sector.