Meanwhile, its shares listed at 3.33% premium at ₹111.60 on the BSE.
The company’s shares were trading with a GMP of ₹1 in the unlisted market ahead of the listing today.
Follow live updates on NTPC Green Energy here
Mahesh M Ojha of Hensex Securities said that NTPC Green Energy IPO was purely a long term story. He advised investors to book partial profits if 8-10% gains are seen, but long term investors can hold it for a long period.
Mehta Equities’ Prashanth Tapse recommended long-term investors to hold the stock despite knowing short-term volatility in the markets and competitive pressures in the sector. For non-allotted investors, he advised to accumulate if the listing is around the issue price.
“The IPO of NTPC Green Energy indicates modest listing gain. The company boasts a robust and diversified portfolio across geographies and off-takers, which is a key strength. While its revenue growth trajectory has been consistent, temporary fluctuations in profitability and margins remain a concern,” said Shivani Nyati of Swastika Investmart.
The IPO, which was open for subscription from November 19 to November 22, had a fixed price band of ₹102-108 apiece. The company raised ₹10,000 crore through the issue.
Analysts had mostly recommended investors to subscribe to the issue, considering the company’s prudent business model and strong earnings growth with improved financials and return ratios.
Proceeds from the fresh issue to the extent of ₹7,500 crore will be used for investment in its wholly owned subsidiary, NTPC Renewable Energy Ltd. (NREL) for repayment, in full or in part of certain outstanding borrowings availed by NREL; and general corporate purposes.
This IPO ranks as the third largest of 2024, following Hyundai Motor India’s ₹27,870 crore issue and Swiggy’s ₹11,300 crore offering.
NTPC management is aiming for significant value unlocking through the listing of NTPC Green Energy, sources told CNBC-TV18 earlier.
In an interview with CNBC-TV18, Mohit Bhargava, CEO of NTPC Green Energy, had said that the primary reason for considering an IPO is the significant need for equity in the business.
“We will have to raise equity either through internal accruals or from the markets. So we feel that we will have to go to the market at some point of time.”
NTPC Green Energy, a wholly owned subsidiary of NTPC is the largest renewable energy public sector enterprise (excluding hydro energy) in term of operating capacity as of September 24 and power generation as of March 2024. The company’s renewable energy portfolio includes both solar and wind power assets with presence across multiple locations in more than 6 states which helps in mitigating risk of location specific generation variability.
As of Sep’24, NTPC Green’s operational capacity stood at 3,220 MW of solar projects and 100 MW of wind projects across 6 states with average Power Purchasing Agreement (PPA) period of 25 years.
Further, it has 13,576 MW of contracted & awarded projects and capacity under pipeline of 9,175 MW as of Sep’24.
NTPC aims to achieve 60 gigawatts (GW) of renewable energy (RE) capacity by FY32. It currently has 3.5 GW of installed capacity and more than 28 GW under development.
IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management will act as the book-running lead managers for the issue.
