NTPC Green Energy Ltd, a renewable energy subsidiary of NTPC, opened its Rs 10,000-crore initial public offering (IPO) for subscription on November 19. The IPO will remain available for subscriptions until November 22.
IPO Price Band
The IPO price range has been set at Rs 102-108 per share. Investors are required to bid for a minimum of 138 shares, which translates to a starting investment of Rs 14,904, while retail investors can make a maximum investment of Rs 1,93,752, which is equivalent to 13 lots.
IPO Details
The IPO consists of a fresh issue of 92.59 crore equity shares with no component of an offer-for-sale. The issue has been structured to allocate 75% of the net offer to qualified institutional buyers, 15% to non-institutional investors, and the remaining 10% to retail investors.
Moreover, the company has kept aside shares worth Rs 200 crore for employees at a Rs 5 discount, while Rs 1,000 crore worth of shares have been reserved for NTPC shareholders.
Ahead of the public offering, NTPC Green Energy raised Rs 3,960 crore through anchor investors on November 18. The company allocated 36.67 crore shares at Rs 108 each to prominent global entities such as Goldman Sachs, Morgan Stanley, the Government of Singapore, and the Abu Dhabi Investment Authority. On the domestic front, leading investors included Life Insurance Corporation (LIC) of India, ICICI Prudential Mutual Fund, Nippon Life India, and Kotak Asset Management Company.
The proceeds from the IPO will be largely used to reduce outstanding debt within NTPC Renewable Energy, a subsidiary of NTPC Green Energy. An amount of Rs 7,500 crore will go toward lowering its borrowings from Rs 17,057.5 crore as of September 2024 to Rs 9,557.5 crore.
The company has earmarked the remaining funds for general corporate purposes.
The equity shares of NTPC Green Energy are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on November 27.
