The much-anticipated ₹10,000-crore IPO of NTPC Green Energy commenced today, offering shares at a price band of ₹102-108 per share. The IPO, entirely a fresh issue, marks a significant step for the largest renewable energy public sector enterprise, aiming to strengthen its position in the renewable energy sector.
Key Details of the IPO:
- Issue Size: 92.59 crore equity shares.
- Price Band: ₹102-108 per share.
- Bid Lot: 138 equity shares and multiples thereof.
- IPO Closing Date: November 22, 2024.
- Allocation:
- 75% reserved for Qualified Institutional Buyers (QIBs).
- 15% for Non-Institutional Investors (NIIs).
- 10% for Retail Investors.
- ₹200 crore worth of shares reserved for employees (at a ₹5 discount per share).
- ₹1,000 crore reserved for NTPC shareholders.
Anchor Book Allocation:
On Monday, NTPC Green Energy raised ₹3,960 crore via anchor investors, with Life Insurance Corporation of India (LIC) emerging as the largest investor, investing ₹500 crore.
- Anchor Investors:
- LIC received 12.63% of the anchor allocation.
- Other marquee investors include Goldman Sachs, Morgan Stanley, Government of Singapore, and Abu Dhabi Investment Authority.
- Domestic institutional investors include ICICI Prudential MF, SBI Life Insurance, HDFC Life Insurance, and Kotak AMC, among others.
- Out of 36.67 crore equity shares allocated, 14.53 crore shares were allocated to domestic mutual funds across 72 schemes.
Fund Utilization:
- ₹7,500 crore will be used to repay debt of NTPC Renewable Energy, a subsidiary.
- Remaining proceeds will be allocated for debt prepayment and general corporate purposes.
Business Overview:
NTPC Green Energy, a Maharatna central public sector enterprise, is one of India’s leading renewable energy players:
- Operational Capacity (as of August 2024):
- 3,071 MW from solar projects.
- 100 MW from wind projects.
- Future Goals:
- 60 GW renewable energy capacity by 2032.
- Currently, 3.5 GW installed capacity with over 28 GW in progress.
- Expanding focus on green hydrogen, green chemicals, and storage solutions.
Merchant Bankers:
The IPO is managed by IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management.
This IPO is one of the final major public offerings of 2024, representing a significant milestone in India’s renewable energy journey. Investors will closely monitor subscription trends and the company’s future potential in the renewable sector.
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