Subscribe for NTPC Green Energy Ltd IPO; Anand Rathi

Anand Rathi, has come out with its report on NTPC Green Energy Ltd. The research firm has recommended to “ Subscribe” the ipo in its research report as on November 18 2024.

Broker Research

November 19, 2024 / 10:02 IST

IPO

Anand Rathi, NTPC Green Energy Ltd

Incorporated in April 2022, NTPC Green Energy Limited, is a whollyowned subsidiary of NTPC Limited. As on Sep’24, it stands as the largest public sector enterprise in renewable energy (excluding hydro) based on operational capacity and power generation. The company’s renewable portfolio encompasses both solar and wind power assets and its operational capacity was 3,220 MW of solar projects and 100 MW of wind projects across 6 states as of Sep’ 24. The company is among the top 10 renewable energy players in India in terms of operational capacity as on Jun’24. As of September 30, 2024, its portfolio consisted of 16,896 MWs including 3,320 MWs of operating projects and 13,576 MWs of contracted and awarded projects. As of September 30, 2024, its "Capacity under Pipeline, for which a memorandum of understanding ("MOU") or term sheet has been entered with joint venture partners or off takers but where definitive agreements have not yet been entered, consisted of 9,175 MWs. As of Sept’ 24, its Capacity under Pipeline together with Portfolio consisted of 26,071 MWs. Company is looking to expand its capacity to 60GW by FY32.

Valuation and Outlook

The company is well placed to capture the tailwind from capacity addition in renewables owing to its strong parentage (NTPC), low operating costs along with diversified capacity portfolio and access to lower cost of capital. Therefore we believe that this issue may be considered for its long term growth. Hence we give “SUBCRIBE for LONG TERM” rating to this IPO.

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