The much-anticipated initial public offering (IPO) of NTPC Green Energy, a wholly-owned subsidiary of the country’s largest power producer NTPC, is generating keen interest from investors eligible to apply under the shareholder quota.
The Rs 10,000-crore IPO will be open for public subscription from November 19 to 22. In addition to retail, high-net-worth individuals (HNIs), and employees, NTPC Green Energy’s share sale will also include a reserved shareholder category, providing NTPC shareholders a chance to participate in the offering.
NTPC Green Energy Ltd has earmarked 10 percent of its upcoming initial public offer for existing shareholders of its parent company, NTPC, potentially enhancing allotment prospects for these shareholders. According to the company’s Red Herring Prospectus (RHP), “equity shares with a face value of Rs 10 each will be allocated to eligible shareholders on a proportionate basis, with this reserved portion not exceeding 10 percent of the total issue size.”
Shareholders holding NTPC shares on the date of the RHP filing are eligible to apply under this reserved quota. Since NTPC Green Energy filed its RHP on November 13 this week, all NTPC shareholders holding at least one share in their demat accounts on this date qualify for this allotment category.
NTPC Green Energy clarified in its RHP that eligible applicants include individuals and Hindu Undivided Families (HUFs) who are public equity shareholders of NTPC, its Corporate Promoter, as of the RHP date, barring any entities restricted under applicable laws.
NTPC Green Energy IPO GMP is trading at around Rs 2.5 – 3 in the unofficial market, according to Investorgain and IPO watch, indicating a premium of around 3 percent.
The IPO is priced between Rs 102 – 108 per share. Investors will have to apply for a minimum of 138 shares and in multiples of 138 thereafter in the IPO, which is one of the biggest offerings by any companies in recent times and comes right after food delivery company Swiggy’s Rs 11,320-crore share sale.
IPO-bound NTPC Green Energy is aiming to invest up to Rs 1 lakh crore in solar and wind assets by FY27, PTI stated in its report.
Parent NTPC has invested Rs 7,500 crore in NTPC Green Energy since inception, Singh said. The company is seeking a valuation of Rs 1 lakh crore for the company.
