Overview
Company: NTPC Green Energy, a subsidiary of NTPC, focuses on renewable energy, primarily solar (95%) and some wind energy.
Position: Largest public sector renewable energy company in India.
Business Model: Generates power through solar and sells it to power distribution companies (discoms).
Current Operations
Installed Capacity: 3.3 GW currently operational, with aggressive expansion plans to 60 GW by FY32.
Investment Plans: Requires ₹3–3.25 lakh crores for its expansion, funded mostly through debt rather than equity.
Growth Potential
The renewable energy sector is growing rapidly, supported by government initiatives targeting 500 GW of renewable energy by 2030.
The company plans to grow its assets at an 85% CAGR in the short term (until FY27) and 26% CAGR beyond FY27.
Operates primarily in Rajasthan, Telangana, Andhra Pradesh, and Gujarat, with ~60% of its current capacity in Rajasthan.
Key Strengths
Strong Parentage: Backed by NTPC, a Maharatna company with strong financials and government support.
Long-term Contracts: 25-year power purchase agreements (PPAs) ensure stable cash flows.
Industry Push: Government policies favoring renewable energy.
Growth Visibility: Aggressive expansion plans with a clear roadmap.
Risks
Valuation Concerns: IPO pricing (₹102–₹108 per share) appears expensive given current capacity and financials.
High Capital Requirements: Dependence on raising significant debt; any delays or issues can impact growth.
Geographical Concentration: 60% of assets are in Rajasthan, posing risk if localized issues arise.
Client Concentration: Top nine clients account for 98% of revenue; losing a major client could have significant impact.
Execution Risks: Reliance on Chinese imports for solar components and potential delays in projects.
Future Dilution: Promoter stake will reduce from 89% to 75% as per SEBI norms, leading to further sales in the market.
IPO Details
Size: ₹10,000 crore.
Shareholder Eligibility: NTPC shareholders as of November 11 can apply in the shareholder category.
Conclusion
Positives: Strong growth potential, government support, and stable cash flows.
Negatives: High valuations, execution risks, and dependency on capital raising.
Recommendation: Consider investing only if valuations become more reasonable after listing or during corrections.

(DISCLAIMER: READERS ARE ADVISED TO CONSULT CERTIFIED EXPERTS BEFORE TAKING INVESTMENT DECISIONS)