NTPC Green Energy IPO
Introduction
NTPC Green Energy Limited, a wholly-owned subsidiary of NTPC Limited, was incorporated in April 2022. This renewable energy-focused company undertakes projects through both organic and inorganic routes. NTPC Green Energy is part of NTPC Limited, a ‘Maharatna’ Central Public Sector Enterprise, and specializes in solar and wind power projects across multiple states in India. Operational Overview
Portfolio Capacity:
As of June 30, 2024: Total portfolio of 14,696 MW, including:
Operating Projects: 2,925 MW
Contracted and Awarded Projects: 11,771 MW
As of August 31, 2024:
Solar Projects: 3,071 MW (operational)
Wind Projects: 100 MW (operational)
Project Execution:
Constructing 31 renewable energy projects in 7 states, totaling 11,771 MW.
Off-takers:
15 off-takers across 37 solar projects and 9 wind projects.
Established long-term Power Purchase Agreements (PPAs) and Letters of Award (LoAs) with government agencies and public utilities.
Strengths
Promoter Expertise:
Backed by NTPC Limited, with proven experience in large-scale project execution and robust relationships with off-takers and suppliers.
Diverse Portfolio:
A strong renewable energy portfolio encompassing solar and wind assets across more than six states.
Financial Stability:
Supported by NTPC’s significant financial strength.
Skilled Team:
Experienced professionals driving renewable energy project execution.
Risks
Project Execution Challenges: Delays or cost overruns could adversely affect performance.
Geographical Concentration: Heavy reliance on projects in Rajasthan poses risks.
Receivable Delays: Non-collection of dues could strain financials.
Capital Intensity: High expenditure requirements may lead to the need for additional financing.
Revenue Dependence: Significant reliance on top five off-takers for revenue.
IPO Objectives
Investment in NTPC Renewable Energy Limited (NREL), a wholly-owned subsidiary.
Repayment of Borrowings to improve financial health.
General Corporate Purposes to support the company’s operations.
NTPC Green Energy IPO: Key Details
IPO Dates: 19 to 22 November, 2024
Price Band : ₹102 to ₹108 per share
Lot Size: 138 shares
Total Issue size: ₹10,000.00 Crores
Retail Quota: 8.79%
GMP: Nil (For Informational purposes only)
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