Once the IPO materializes, what will the IPO proceeds be used for? How do you plan to mobilize and deploy these funds?
Gurdeep Singh: IPO proceeds will be used for capital expenditures for ongoing and future projects. This is dilution and issuance of new shares, and there is no sale of shares at this stage. We have been aiming to raise Rs 10,000 crore through an initial public offering (IPO).
Are you concerned about how the Street will react to this IPO given the mood of the market?Recent listings haven’t performed very well on the Street. Worried about how the street will react?
Jaikumar Srinivasan: No, I’m not worried at all. We maintain reasonable prices and also reflect our growth potential. This is a well thought out strategy for pricing an IPO.
Gurdeep Singh: We determined our price range after complete due diligence and thorough discussions with various investors and their reactions to future developments. This is a very fair value and initial investors should benefit in the long run.
The company recorded a revenue CAGR of 46.8%. Operating EBITDA CAGR is 48. PAT CAGR is also 90.75% from FY22 to FY24. Are you confident that this number can be maintained in the future?
Jaikumar Srinivasan: The same trend will continue. In fact, the business’ operating EBITDA margin is expected to be in excess of 87% to 90%. We will continue to do this and establish a business model that improves both performance and profitability.
Help us understand where the nuclear, hydrogen and ammonia production capacity is located. Will it be by NTPC or by the renewable energy sector? What share of the total capacity will they account for by then?
Gurdeep Singh: At present, hydropower and nuclear power are not part of NTPC Green Energy. NTPC Green Energy is based on four pillars: solar, wind, energy storage, batteries, PSP, and we are also working on thermal storage and carbon dioxide-based energy storage systems. Let’s see how quickly we can work on it. And in the future, this will include green molecules including green methanol, green ethanol, DME, sustainable aviation fuel, green ammonia, and more. So these things will be housed in NTPC Green Energy itself. Let me share here that we are working on building a hydrogen hub in Andhra Pradesh. This is a place called Pudhimadaka near Vizag, which already has about 1,200 acres of land along the coast and is being developed as a hydrogen hub. . Apart from nuclear and hydropower, all non-fossil power will go to NGEL.The intensity of competition in the sector in which you operate is increasing. How do you plan to proceed with careful bidding on all future projects and what are your prospects in that regard?
Gurdeep Singh: You know, we were very conscious. We are a public sector utility company and our actions and decisions are based on very thorough analysis and we document everything. Therefore, we never bid just to win a project, but at the same time we also never try to bid very high and expect to actually succeed. squeeze consumers.
We always have very smart and healthy returns. We maximize profits, but we also make sure that our projects are viable throughout and well-received by off-takers.
