NTPC Green Energy Limited, a subsidiary of NTPC, is preparing for its upcoming Initial Public Offering (IPO), offering a fresh issue of equity shares worth ₹10,000 crores. The company is set to tap into the market with a 100% Book Built Issue. Investors from various categories, including Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), Retail Individual Investors (RIIs), eligible shareholders, and employees, can participate in the offering.
Key Quotas and Allocations
| Investor Category | Quota/Allocation |
|---|---|
| Qualified Institutional Buyers (QIBs) | At least 75% of the net issue |
| Non-Institutional Investors (NIIs) | Not more than 15% of the net issue |
| Retail Individual Investors (RIIs) | Up to 10% of the net issue |
| Eligible Shareholders | Portion reserved for bids up to ₹20 lakhs |
| Eligible Employees | Up to 5% of post-issue paid-up equity capital, bids up to ₹50 lakhs |
Allocation Structure
- Qualified Institutional Buyers (QIBs): A minimum of 75% of the net issue is reserved for QIBs. Anchor investors, a subset of QIBs, may be allocated up to 60% of this portion. Anchor investors are expected to participate in the issue prior to the opening date, securing a significant portion of the IPO.
- Non-Institutional Investors (NIIs): Not more than 15% of the net issue is reserved for NIIs. This category is further divided into two sub-categories based on application sizes:
- One-third of the NII portion is reserved for investors bidding between ₹20 lakhs and ₹1 crore.
- Two-thirds is reserved for investors with bids exceeding ₹1 crore. Any unsubscribed portion in either sub-category can be reallocated to the other, ensuring flexibility in allotments.
- Retail Individual Investors (RIIs): Retail investors will have up to 10% of the net issue reserved for them. Bids in this category are capped at ₹20 lakhs per investor, making it accessible to individual participants looking to invest in green energy.
- Eligible Shareholders: Up to a specified portion of the issue will be reserved for NTPC shareholders, allowing them to participate in the IPO. Shareholders can bid for up to ₹20 lakhs worth of shares, with any bids exceeding this amount disqualifying them from participating in this reserved portion.
- Employee Reservation: A portion of the issue is reserved for NTPC Green Energy employees, constituting up to 5% of the post-issue paid-up equity share capital. Employees can apply for shares up to ₹50 lakhs, with a discount to be offered on the issue price. Initially, bids up to ₹20 lakhs will be prioritized, with any unsubscribed portion being reallocated among employees for higher bids, up to the limit of ₹50 lakhs.
Book Building Process
The IPO follows a Book Building Process, where investors must place bids within a specified price band that will be determined closer to the issue date. The allocation of shares will be on a proportionate basis, based on the demand received from various investor categories.
With the focus on the fast-growing renewable energy sector, NTPC Green Energy is positioning itself as a key player in India’s green energy transition. The IPO presents an exciting opportunity for investors looking to participate in the renewable energy space while leveraging the credibility of NTPC as its promoter.
Listing and Issue Dates
The shares are expected to be listed on both the BSE and NSE, providing ample liquidity for investors. The final price, employee discount, and issue dates will be announced closer to the opening date.
