The NTPC Green Energy IPO witnessed a promising start, garnering a 33% subscription rate on its opening day, November 19. A total of 19.48 crore shares were bid for out of the 59.3 crore shares available. Retail investors showed robust interest, subscribing to 133% of their allocated 8.6 crore shares.
Subscription Details
- Retail Individual Investors (RIIs): Oversubscribed by 133%.
- Non-Institutional Investors (NIIs): Subscribed to 2 crore shares against an allocation of 12.9 crore.
- Qualified Institutional Buyers (QIBs): Subscribed to just 87,906 shares out of 25.9 crore earmarked for them.
- Employee Category: Subscribed 17%.
The IPO, aimed at raising Rs 10,000 crore, offers shares in a price band of Rs 102-108. Retail investors can apply with a minimum lot size of 138 shares, requiring an investment of Rs 14,904. Subscriptions close on November 22, with allotment expected on November 25 and listing tentatively set for November 27 on the BSE and NSE.
Purpose of the IPO
The funds raised will primarily support NTPC Green Energy’s investment in its subsidiary, NTPC Renewable Energy Ltd, for debt repayment and general corporate purposes.
Key Highlights
- NTPC Green Energy raised Rs 3,960 crore through its anchor book on November 18, with participation from marquee global investors like Goldman Sachs, Morgan Stanley, and the Government of Singapore.
- The company, incorporated in April 2022, focuses on renewable energy projects and aims to lead India’s clean energy transition.
Should You Subscribe?
The IPO has seen strong interest from retail investors, but the muted response from QIBs may raise some concerns. Investors looking to participate should evaluate the company’s growth potential in renewable energy and its strategic role in India’s energy transition.
Disclaimer: The information provided is for informational purposes only and should not be considered financial advice. Consult a certified expert before making investment decisions.
