NTPC Green Energy Files for IPO

Key Takeaways from the IPO Filing

• NTPC Green Energy Limited has filed its Draft Red Herring Prospectus for an upcoming IPO.
• The IPO will involve a fresh issue of equity shares, aggregating up to ₹10,000 crore.
• The IPO includes a reserved portion for eligible NTPC Limited shareholders and employees of NTPC and its subsidiaries.

As per a stock exchange filing, the initial public offering, or IPO, is going to be launched, subject to market conditions and other regulatory approvals, and will consist of a fresh issue of equity shares with a face value of Rs 10 each, aggregating up to ₹10,000 crore. As per SEBI requirements, the IPO will also have reservations for eligible shareholders of NTPC Limited and eligible employees of NTPC, NGEL, and its subsidiaries.

This move by NGEL represents a major step forward in their expansion ambitions as NTPC's green energy arm seeks to raise funds and strengthen its position in India's renewable energy sector. This offering provides NTPC shareholders and employees an exclusive opportunity to participate in the NGEL growth model.

Details concerning the IPO process, including pricing and timing, will be disclosed after regulatory approvals are received. 

About NTPC Green Energy Limited

NTPC Green Energy Limited (NGEL), a subsidiary of the Indian state-owned power generation company NTPC Limited, was established in 2022. Its primary focus is on developing and operating renewable energy projects, primarily in the solar and wind power sectors.

NGEL's mission is to contribute to India's clean energy transition by generating renewable electricity and reducing carbon emissions. The company aims to expand its renewable energy portfolio through a combination of new project developments and strategic acquisitions.

Currently, NGEL has several renewable energy projects under development and operation across India. These projects involve the construction and management of solar and wind power plants, which generate electricity and contribute to the country's renewable energy capacity.

Key Takeaways from BGR Energy Termination Notice:

• The Chennai Metropolitan Water Supply and Sewage Board terminated BGR Energy Systems' contract on September 23.
• The reasons consist of project execution delays and the quality of the water from the RO.
• The financial bids were received on 23 December 2016, and a contract was awarded for a 45 MLD capacity tertiary treatment reverse osmosis facility at Kodungaiyur.
• It was awarded on January 4, 2017, with a total value of Rs 440 crore, of which Rs 235 crore will be used for construction and Rs 205 crore for operation and management.
• The cancellation is assumed to have led to turnover and profit from the pending contracts.

The contract was awarded on January 4, 2017, for a total value of Rs 440 crore- Rs 235 crore for construction and Rs 205 crore for operation and management over 15 years. This loss will be in terms of an amount falling short in the turnover and proportionate profit due to the pending contracts.

The contract was signed on December 23, 2016, to design, build, and operate a 45 MLD capacity Tertiary Treatment Reverse Osmosis (TTRO) facility in Kodungaiyur. This included supplying and laying DI transmission mains for product water conveyance to industries in the Manali Area, Chennai.

About BGR Energy Systems Limited:

BGR Energy Systems Limited was a joint venture with GEA Energietechnik GmbH that was established in the year 1985. BG Raghupathy and his family became sole shareholders in the year 1993. They have elaborated product and services offerings in Power and Oil & Gas sectors. The company rebranded on June 28, 2007. BGR Energy operates in two business segments that are Supply of Systems and Equipments and Turnkey Engineering Project Contracting. It engineers, manufactures, procures, constructs, and commissions to manage projects. The company provides Balance of Plant (BOP) equipment and civil works for Power Generation. Currently, it is also on Engineering, Procurement, and Construction (EPC) contracts, supplying all the necessary power plant equipment. Currently, BGR Energy specialises in BOP and EPC contracts tailored according to customer requirements.

Key Takeaways from Orient Technologies' Financial Performance:

• For the April-June quarter of FY25, Orient Technologies reported a 30.43% year-over-year rise in profit after tax of Rs 9.3 crore.
• Compared to last year, operating revenue climbed by 27.3% to Rs 148.84 crore.
• Earnings before interest, taxes, amortisation, and depreciation ( EBITDA) rose by 28.53% to Rs 13.65 crore.
• The company's EBITDA margin increased by 9.2% during that same quarter.

The company’s revenue from operations increased 27.3% year-on-year (Y-o-Y) to Rs 148.84 crore in the April-June quarter of the financial year 2024-25, from Rs 116.9 crore in the same quarter previous year.

The company’s earnings before interest, tax, amortisation, and depreciation (EBITDA) rose 28.53%  to Rs 13.65 crore, compared to Rs 10.62 crore in the corresponding period last year.

Orient Technologies EBITDA margin rose 9.2% in the third quarter ended June 2024.

About Orient Technologies Limited:

Orient Technologies Limited is a technology development company that was established in 1997 in Mumbai, Maharashtra, India, a start-up that sought to bring novel technology solutions into businesses that engage with customers. As these professionals continued emphasising excellence and innovation, the company emerged as a leading player in the IT sector, excelling in full capabilities as well as international clientele. Orient Technologies Limited has continued to venture to new frontiers in technology for businesses navigating the dynamic landscape of digitisation today.

Key Takeaways from Revathi Equipments Financial Performance:

• Revathi Equipments has reported a net profit of Rs 7.94 crore during Q1 June 2024, which is 412.26% up from Rs 1.55 crore posted during Q1 June 2023.
• Revenue from operations went up by as much as 165.73% to Rs 52.03 crore in Q1 June 2024, as against Rs 19.58 crore reported during Q1 June 2023.
• EBITDA jumped to Rs 8.69 crore. This is compared to a year-on-year growth of 274.57% from Rs 2.32 crore in Q1 June 2023.
• The EBITDA margin expanded to 16.7% in Q1 June 2024.

Revenue from operations of Revathi Equipments rose 165.73% to Rs 52.03 Crore in the first quarter ended June 2024  against Rs 19.58 crore during the previous quarter ended June 2023.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 274.57% year-on-year to 8.69 Crore in the quarter ended June 2024 compared to 2.32 Crore it reported in the previous quarter ended June 2023. Furthermore, the company’s EBITDA margin expanded to 16.7% in the quarter ended June 2024.

 About Revathi Equipments Limited:

Revathi Equipments Limited (REL) was established in 1977 and is one of the few manufacturers that have produced both blast hole and water well drills used in various applications including mining, construction, and exploration. REL boasts of four decades of excellence history having sold over 1,000 drilling rigs across the globe and is certified as ISO 9001:2008. REL is said to produce custom designs in line with the specific requirements of a customer, and it also possesses strong engineering capabilities in addition to developing relationships with vendors. Apart from this, the company has concentrated on strong after-sales service. REL operates as part of the Renaissance Group, which is listed on the BSE and NSE stock exchanges.