Established in 2022, NTPC Green Energy Ltd. is a wholly-owned subsidiary of NTPC Ltd. With an operational capacity of 3,320 MW (3,220 MW solar, 100 MW wind), it is the largest public sector renewable energy company (excluding hydro) in terms of operational capacity as at 30 September 2024 and power generation in FY24.
Core Operations
The company develops utility-scale solar and wind projects and offers services for public sector undertakings (PSUs) and corporates. The company has partnerships with 17 offtakers for 41 solar and 11 wind projects, supported by long-term PPAs averaging 25 years.
As of June 30, 2024, NTPC Green Energy is building 31 renewable energy projects across seven states, totalling 11,771 MW. It has also formed joint ventures with Indian Oil Corporation and three other PSUs to expand renewable power production.
IPO Details
The ₹10,000 crore IPO is entirely a fresh issue. The shares will be listed on NSE and BSE.
Key Details
- Company Name: NTPC Green Energy Limited
- Company Established On: 2022
- Company Type: Private
- CEO/MD: Rajiv Gupta
Financial Overview (₹ crore)
| Particulars | FY22 | FY23 | FY24 | H1 FY25 |
|---|---|---|---|---|
| Revenue | 910 | 1,449 | 1,962 | 1,082 |
| Net Profit | 94.7 | 456 | 344 | 175 |
Strengths
- Backed by NTPC Ltd., a legacy player in power generation.
- Among the top 10 renewable energy players in India in terms of operational capacity as of 30 June 2024.
- Diverse portfolio across geographies, with utility-scale solar and wind projects for PSUs and corporates.
- Long-term PPAs averaging 25 years with reliable government and public utilities.
- Steady revenue growth with robust EBITDA margins of 87%-90% over the last three fiscal years.
- Strong vendor network sourcing high-quality components from India and abroad.
Risks
- Revenue dependency: 45% of earnings in Q1 FY25 came from a single buyer.
- Project delays and cost overruns could disrupt growth and finances.
- Concentrated operations in Rajasthan face risks from disruptions or natural calamities.
- Intense competition from both renewable and traditional energy players.
- Long project cycles delay revenue generation after upfront investments.
- Dependence on weather conditions impacts solar and wind power generation.
- Import restrictions on critical equipment could affect operations.
- High debt burden of ₹15,276 crore as of 30 June 2024 and vulnerability to interest rate fluctuations.
Key Opportunity
India’s focus on achieving 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030 presents significant growth potential.
You can now apply for the NTPC Green Energy IPO on Upstox. Click here.