NTPC Green Energy IPO: The Rs 10,000 crore initial public offering (IPO) backed by Maharatna PSU giant NTPC, is all ready to hit the Indian stock market next week.
NTPC Green Energy IPO is among the most awaited issues in the sector. The latest grey market premium (GMP) of NTPC Green is hinting at a single-digit listing on BSE and NSE. Here are key details of the IPO.
NTPC Green Energy IPO GMP:
As per Investor Grain, NTPC Green Energy IPO’s last GMP is Rs 2.50, last updated Nov 15th 2024 08:00 AM. With a price band of 108.00, NTPC Green Energy IPO’s estimated listing price is Rs 110.5 (cap price + today’s GMP). The expected percentage gain/loss per share is 2.31%.
10 Key Pointers Of NTPC Green Energy IPO:
1. Issue Size: The IPO is purely of fresh issue worth Rs 10,000 crore. Hence, there will be no offer for sale (OFS) by selling shareholders. As per NSE data, up to 98,14,02,869 equity shares will be offered for subscription.
2. Price Band: The price band of the IPO is fixed at the lower end of Rs 102 and the upper end of Rs 108 per share. The face value of the equity shares is set at Rs 10 each. There is a discount of Rs 5 per equity share offered to eligible shareholders.
3. Bid Lot: The bid lot size for the IPO is 138 Equity Shares and in multiples thereof. For retail investors, the maximum amount of investment is Rs 2 lakh. While the maximum subscription amount for eligible employees is Rs 5 lakh.
4. Employees Reservation: Up to Rs 200 crore worth of shares will be reserved for eligible employees of NTPC Green Energy for subscription.
5. Shareholders Reservation Quota: Up to Rs 1,000 crore worth of shares will be reserved for subscription to those investors who hold shares of NTPC Ltd.
6. Other Investors: Excluding employee reservation and shareholders quota, up to 75% of the remaining IPO size will be allocated to qualified institutional buyers (QIBs), while 15% of the size will be kept for non-institutional investors (NII). The rest of the 10% of the IPO will be kept for retail individual investors (RII).
7. IPO Dates: NTPC Green Energy will launch its IPO for subscription on BSE and NSE on November 19. Bidding will close on November 22, 2024. Further, the bidding for anchor investors is scheduled to take place on November 18, a day before the 100% book-building IPO.
8. Proceeds: Since the IPO is an entirely fresh issue, NTPC Green Energy will utilise the entire proceeds from the offer. Of the total Rs 10,000 crore size, NTPC Green Energy plans to utilize about Rs 7,500 crore for investment in its wholly owned subsidiary, NTPC Renewable Energy Limited (NREL) for repayment/ prepayment, in full or in part of certain outstanding borrowings availed by NREL. The rest of the proceeds could be used for general corporate purposes or other development.
9. Allotment, Listing Dates: Tentatively, the IPO allotment comes right after the closure of an IPO. So NTPC Green Energy IPO will close on November 21, and accordingly, the allotment of shares will likely take place on November 22. After this, the equity shares will be credited to eligible investors’ demat accounts or investors who did not get eligible will receive their refunds on November 25. Tentatively, the listing will most likely take place on November 26 or November 27. The stock market will be closed on November 20, 23 and 24th.
10. NTPC Green Energy is a wholly-owned subsidiary of NTPC Limited, a ‘Maharatna’ central public sector enterprise. The company is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of September 30, 2024 and power generation in Fiscal 2024.
The company’s operational capacity was 3,220 MW of solar projects and 100 MW of wind projects across six (6) states as of September 30, 2024. Notably, NTPC Green Energy is strategically focused on developing a portfolio of utility-scale renewable energy projects, as well as projects for public sector undertakings (“PSUs”) and Indian corporations.
NTPC Green projects generate renewable power and feed that power into the grid, supplying a utility or off-taker with energy. For its operational projects, the company has entered into long-term Power Purchase Agreements (“PPAs”) or Letters of Award (“LoAs”) with an off-taker that is either a Central government agency like the Solar Energy Corporation of India (“SECI”) or a State government agency or public utility.
