Renewable energy transition company NTPC Green Energy shares had a muted debut on the stock exchanges on Wednesday, November 27.
The shares opened at Rs 111.5 on the National Stock Exchange (NSE), with a modest premium of 3.2% over the issue price of Rs 108.
On the Bombay Stock Exchange (BSE), the stock listed at Rs 111.60, which was a 3.33% increase from the IPO price.
The IPO price range had set at Rs 102-108 per share while investors were required to bid for a minimum of 138 shares.
The IPO consisted 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.
It had kept aside shares worth Rs 200 crore for employees at a Rs 5 discount. On the other hand, Rs 1,000 crore worth of shares Were reserved for NTPC shareholders.
Ahead of the public offering, NTPC Green Energy had raised Rs 3,960 crore through anchor investors on November 18. The company had 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 had invested in the 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. It has kept the remaining funds for general corporate purposes.
