NTPC Green valued at Rs 78,400 crore by Goldman Sachs; brokerage maintains ‘buy’ on NTPC with Rs 430 target

tamiah312 September 25, 2024

4 4 minutes read

NTPC Green valued at Rs 78,400 crore by Goldman Sachs; brokerage maintains ‘buy’ on NTPC with Rs 430 target

Within PSUs, one of the year’s best performers, NTPC shares have rewarded investors with 79 per cent returns over the past year, and counting. Is it a good time to get into the stock, which is up nearly 38 percent year-to-date in 2024 already? Goldman Sachs has maintained a ‘buy’ rating on NTPC, which is valued at Rs 4,17,300 crore and wholly-owned IPO subsidiary NTPC Green Energy at Rs 78,400 crore.

Here are 10 things you should know about this development:

NTPC Green Energy is planning to launch what is likely to be the largest IPO of 2024 so far, at Rs 10,000 crore including fresh issue of shares.
At Rs 10,000 crore, such an IPO would be the second largest by a PSU in the country after LIC by 2022.
Finance: The renewables company has an annual revenue of around Rs 2,000 crore with growth in FY24 recorded at 47 percent.
According to Goldman Sachs, NTPC Green’s earnings are in line with its estimates.
The primary issue will result in a 13 percent dilution of NTPC’s stake in NTPC Green Energy, according to the brokerage.
Time for an IPO: The IPO is expected to hit the road in the first week of November, according to Zee Business research.
Use of funds: Of the proceeds, NTPC Green Energy plans to use Rs 7,500 crore for debt repayment, and the rest for general corporate purposes.
Are you a shareholder of NTPC? The planned IPO will have a special share reserved for NTPC shareholders, which means that even one share held in NTPC can increase the applicant’s chances of winning a share in the primary market issue.
What is NTPC Green Energy and what does it do? Established in 2022, NTPC Green Energy manages the renewable business of its parent.
Power: Currently, NTPC Green has a capacity of 3 GW with plans to take it to 20 GW by FY27 and 60 GW by 2032.