NTPC Green Energy
The world is fast moving towards a sustainable energy future. India, as the fastest-growing economy globally, is leading this journey from the front. The country is stepping up its efforts to reduce carbon emissions and meet its renewable energy targets for 2030.
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NTPC Green Energy Limited (NGEL), a subsidiary of NTPC Limited, the country’s largest energy conglomerate is leading this mission of transition to clean energy. The company has been a front-runner in renewable power sources like solar, wind, and green hydrogen.
The government of India has set a target to reduce the use of fuel-based energy and is committed to increasing non-fossil fuel-based energy capacity to 500 GW by 2030. To achieve this goal, the government of India has set some policies such as National Green Hydrogen Mission, Renewable Energy Purchase Obligation policies, Energy storage obligations, Renewable Generation Obligations, and Performance Link Incentives, etc. to promote the production of renewable energy at every possible places.
NTPC Green Energy: Leading Green Hydrogen Company
The Government of India approved the National Green Hydrogen Mission, intending to develop a green hydrogen production capacity of 5 million metric tonnes (MMT) and an associated RE capacity addition of about 125 GW by 2030.
NTPC Green Energy (NGEL) is the pioneer in achieving the renewable energy goal of the government. NGEL has been selected as the technology partner for 1 GW capacity for green hydrogen electrolyzers.
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The Green Vision
NTPC Green Energy Limited (NGEL) is a wholly Owned Subsidiary of NTPC Limited. To achieve renewable energy targets, the government of India assigned the task to NGEL to develop large-scale green energy projects to ensure a greener energy mix for the nation.
NGEL is focusing broadly on 4 major sectors as below.
Ultra-Mega Renewable Energy Power Park
NGEL is implementing and planning a cumulative capacity of 36GW in different states through the UMREPP scheme. Rajasthan (20 GW) and Gujarat (4.8 GW), Maharashtra (2.6 GW), Uttar Pradesh (2GW), Andhra Pradesh (4 GW), Madhya Pradesh (0.6 GW) and DVC (2 GW) for realizing 60 GW RE capacity plan.
Best Green Hydrogen Company
NTPC is the technology partner for 1 GW capacity for green hydrogen electrolyzers.
Leader in Energy Storage
CEA has projected a Battery Energy Storage (BES) capacity of 208 GWh as a part of the installed capacity by 2032. NTPC has tendered 500 MW/3 GWh and 1500 MW/9 GWh of Storage capacity.
The company is also planning for energy storage projects for green hydrogen at suitable location(s) across India.
Planning for Offshore Wind Energy
NTPC is also exploring collaborations with global partners to share expertise and leverage their experience in developing offshore wind energy projects.
NTPC Green Energy unlisted share price
As per the BharatInvest site, NTPC Green Energy unlisted share price is trading at Rs 500 per equity share. This is unlisted share price, the company has not yet listed in exchanges in India for general public trading.
The company has filed DRHP with SEBI for approval and planning for a listed in both BSE and NSE exchange as main-board IPO. Let us discuss about the NGEL IPO details.
NTPC Green Energy IPO Details: Key Facts
- NGEL filed a Draft Red Herring Prospectus for an initial public offering on September 18, 2024.
- NTPC green energy IPO Date is yet to be announced: –
- CRISIL has given CRISIL AAA/Stable (Reaffirmed) for long-term rating while CRISIL A1+ (Reaffirmed) for the short-term.
- Governments across the globe including India have been focusing on renewable energy and green hydrogen energy as a major source for future energy needs.
- The company has strong growth potential to excel in this segment despite competition.
- NTPC green energy IPO issue size will be approximately ₹ 10000 crore at a face value of ₹ 10 each.
NTPC green energy IPO – Financial Strength
- In the three months ended June 30, 2024, and Fiscal 2024, renewable energy sales accounted for 96.48% and 96.17%, respectively, of the total revenue from operations.
- In Fiscal 2023 and Fiscal 2022, renewable energy sales accounted for 96.94% and 97.19%, respectively, of its revenue from operations.
- In Fiscal 2023 and Fiscal 2024, revenue from operations grew by 59% and 35.4% respectively from the previous period.
- In Fiscal 2023 and Fiscal 2024, the operating EBITDA Margin grew by 90% and 89% respectively from its previous period.
Objective Behind the NGEL IPO
- The net proceeds from the fresh issue, ₹ 7500 crore will be used for the investment in its Subsidiary, NTPC Renewable Energy Limited (NREL) for repayment/ prepayment, in full or in part of certain outstanding borrowings availed by NREL.
- The rest of Rs 2500 crore will be used for general corporate purposes.
- This will also enhance the visibility and brand image of the company as well as provide a public market for Equity Shares in India.
NTPC green energy IPO review: Good or Bad?
- NTPC Green Energy is one of the Maharatna companies of the government of India.
- Global renewable energy market size is expected to grow from USD 900 Billion in 2022 to USD 3200 Billion by 2030.
- India’s renewable energy market size is expected to be worth up to $80 billion by 2030 from around $20 billion in 2022.
- The Government of India has set a target to achieve a 500 GW renewables target before 2030 from around 180 GW in 2022.
- Foreign direct investment (FDI) in India’s renewable energy sector stood at $251 million/ Rs 20.5 billion in the third quarter (Q3) of the financial year (FY) 2023.
- There is a huge market to capture for this company.
- The government of India is focusing on green hydrogen to make India a hub of this energy.
- NTPC Green Energy will play a pivotal role in achieving this target.
- The company has recorded strong revenue growth over the years.
- Considering the above factors NTPC Green Energy has strong growth potential.
NTPC Green Energy: Outlook
NTPC Green Energy is playing a leading role in transforming India’s energy landscape from fossil fuel to renewable energy. With highly advanced technological innovation and a commitment to sustainability, NTPC Green Energy Limited is leading the future of India’s energy sector. This is a good company to look for investment. NTPC Green Energy IPO is the right way to enter into this segment and invest in a Maharatna of the government of India.
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