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BACKGROUND

NTPC Green Energy Limited (NGEL), a subsidiary of NTPC Limited, began operations in February 2023, managing 3,320 MW of renewable energy (RE) capacity, predominantly solar. It has a robust pipeline of 26,071 MW, targeting India’s energy transition goals under NTPC’s vision of achieving 60 GW RE capacity by 2032. Focused on utility-scale RE projects, NGEL leverages innovative technologies, strategic partnerships, and geographic diversification to maintain operational efficiency and mitigate risks. Backed by NTPC’s expertise, it is a leading public-sector RE enterprise, with over 95% of FY25 H1 revenue from renewable energy sales.

Objects and Details of the Issue:

The public issue consists of fresh issue aggregating up to Rs 10000 Cr. Fresh Issue shall be utilized towards: (Investment in their Subsidiary, NTPC Renewable Energy Limited for repayment in outstanding borrowings - 7500 Cr)

Investment Rationale:

* Strong Parentage of NTPC Limited

* Diversified Renewable Energy Portfolio

* Proven Project Execution and Procurement Expertise

* Growing Project Pipeline through Strategic Bidding and Partnerships

* Focus on New Energy Solutions Green Hydrogen, Green Chemicals, and Battery Storage

* Driving Efficiency and Cost Reductions in Project Execution and O&M

* Commitment to Sustainability and India's Energy Transition Goals

Valuation and Recommendation:-

NTPC Green Energy Ltd. leverages the strong parentage of NTPC Limited, a diversified renewable portfolio, and a focus on solar and wind projects. The company shows good operational efficiency and has a growing pipeline of projects backed by strategic partnerships. However, its reliance on power purchase agreements (PPAs) and regulatory uncertainties may affect financial stability. Compared to peers, the company’s ROE (5.5%) is lower, owing to lower leveraging. High valuation multiples, such as EV/EBITDA (59.8x) and P/B (4.4x) makes us believe that the company is fully priced relative to peers. Considering these factors, we recommend a Neutral rating for the IPO

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SEBI Registration number is INH000001766