The NTPC Green Energy IPO is set to open for subscription on November 19, 2024, and close on November 22, 2024. The price band is ₹102-108 per share, and the lot size is 138 shares. The IPO aims to raise ₹10,000 crore, primarily to fund its renewable energy projects and reduce debt
Financial and Growth Highlights:
- Portfolio: As of September 2024, NTPC Green Energy had an operational capacity of 3.3 GW and plans to expand this to 6 GW by FY25 and 19 GW by FY27.
- Revenue Growth: The company's revenue grew by over 1,000% between FY23 and FY24, and profit after tax increased by 101.32%
- Valuation: At the upper price band, the IPO is priced at a post-issue EV/EBITDA multiple of approximately 35.3x FY25 estimates, suggesting aggressive pricing
GMP (Grey Market Premium):
As of November 17, 2024, the GMP for the IPO is ₹1, suggesting a negligible premium over the upper price band of ₹108. This translates to an estimated listing price of ₹109, indicating limited upside potential for short-term gains
Investor Considerations:
- Positives: Strong backing by NTPC, robust growth potential in renewable energy, and focus on clean energy solutions.
- Concerns: High valuations and a low GMP may deter investors looking for short-term listing gains. However, long-term investors may consider the IPO given the company's growth trajectory in renewable energy.
The IPO is a better fit for long-term investors who believe in the renewable energy sector's growth rather than those seeking immediate returns.
No comments:
Post a Comment