The initial public offering (IPO) of NTPC Green Energy Limited garnered a 93% subscription on the second day of the offer, with bids received for 54.96 crore shares against 59.31 crore shares on offer.
Key Subscription Details
- Retail Individual Investors (RIIs): The retail segment was oversubscribed by 2.38 times, indicating strong demand.
- Non-Institutional Investors (NIIs): Subscribed 34%, reflecting moderate interest.
- Qualified Institutional Buyers (QIBs): Witnessed a 75% subscription.
Anchor Investments
NTPC Green Energy raised ₹3,960 crore from anchor investors before the IPO launch, boosting market confidence.
IPO Details
- Issue Size: ₹10,000 crore, entirely a fresh issue with no Offer-for-Sale (OFS) component.
- Price Band: ₹102-108 per share.
- Subscription Period: November 19 to November 22.
- Use of Proceeds:
- ₹7,500 crore to repay or prepay loans of NTPC Renewable Energy Ltd. (NREL).
- Remaining funds for general corporate purposes.
Grey Market Premium (GMP)
Despite the decent subscription figures, the grey market premium (GMP) remained flat, hinting at subdued listing gains for the IPO.
Timeline
- Allotment Date: November 25.
- Listing Date: November 27.
Outlook
While retail investors have shown robust enthusiasm, subdued demand from NIIs and flat GMP suggest tempered expectations for listing day gains. The IPO proceeds will significantly reduce NREL’s debt, supporting NTPC Green Energy’s renewable energy expansion and strengthening its financial position.
Disclaimer: The above content is for informational purposes only. Consult a certified financial advisor before making investment decisions.
