NTPC Green Energy IPO GMP Today: After some big listing like Hyundai and Swiggy this year so far, the primary market is all set to see another high-profile initial public offering (IPO) as NTPC Green Energy, the green energy arm of state-owned NTPC, is up for D-street debut soon.
The IPO of NTPC Green Energy Ltd (NGEL) is set to open on November 19. However, ahead of the opening of the subscription window, the shares of the subsidiary of Maharatna PSU NTPC have declined in the unlisted market.
NTPC Green IPO Subscription Date
The much-awaited public issue of NTPC Green Energy will be open for subscription on Tuesday, November 19 and close on Friday, November 22.
NTPC Green IPO Price Band, Lot Size
The state-owned green energy company kept IPO issue price at the range of Rs 102-108 per share, with a lot size of 138 shares.
Of the total issue, 75 per cent is for Qualified Institutional Buyers, 15 per cent for High Net-Worth Individuals, and 10 per cent for retail buyers.
NTPC Green Energy IPO GMP Today
According to several websites that track unlisted market, the shares of NTPC Green Energy are currently commanding a GMP of Rs 1.40, indicating a premium of 1.3 per cent to the issue.
However, the GMP of the company has declined ahead of the opening of the subscription on Tuesday. NTPC Green Energy IPO GMP on November 14 was Rs 2.50 while it was Rs 3 on November 13. Before that it was, Rs 9 on November 11 and 12. On November 9 and 10, the GMP of the issue was Rs 25 and 16, respectively.
NTPC Green Energy IPO Details
The company is offering fresh equities to the public worth Rs 10,000 crore totalling approximately 92.59 crore shares. The proceeds from the fresh issue worth Rs 7,500 crore will be used for investment in its wholly-owned subsidiary, NTPC Renewable Energy (NREL) for repayment or prepayment; capital expenditure; and other general corporate purposes.
The Company had filed its IPO papers with the regulator on September 18.
About NTPC Green Energy and its financials
Promoted by NTPC, NTPC Green Energy is a sizable renewable energy public sector enterprise (excluding hydro) in terms of operating capacity and power generation.
NTPC Ltd a ‘Maharatna’ central public sector enterprise contributes 24 per cent of India’s total power generation and has committed to increasing its renewable energy capacity to 60 GW by 2032. NGEL is poised to play a significant role in achieving this goal.NGEL’s projects are geographically diversified, with operations in states like Rajasthan, Gujarat, Tamil Nadu, and Uttar Pradesh.
This broad footprint reduces risks related to location-specific generation variability.
Additionally, the company’s extensive experience in renewable project development and execution, supported by NTPC’s expertise, strengthens its position in the market.
NGEL owns 8,900 acres of freehold land and 45,700 acres of leasehold land, ensuring a solid foundation for future projects.The company enjoys access to low-cost capital due to its strong parentage and operational efficiencies. This is crucial in maintaining profitability in capital-intensive renewable energy projects.
Moreover, NGEL’s focus on green hydrogen, green chemicals, and battery energy storage systems aligns with India’s sustainability goals, promising significant growth in the coming years.
As of June 30, 2024, NTPC Green’s portfolio consisted of 14,696 MWs including 2,925 MWs of operating projects and 11,771 MWs of contracted and awarded projects. Additionally, it has 10,975 MWs of capacity under the pipeline, aggregating to 25,671 MWs together with its portfolio.
Over the next 6-9 years, the company plans 14 GW of pumped hydro-capacity to be commissioned versus the current installed 3.3GW. Under construction is 5.9GW and in the pipeline is 10.8 GW.
The company aims to reach 60 GW of renewable capacity by 2032.
In late October, NTPC Green Energy, a wholly owned subsidiary of NTPC, has received capital markets regulator Securities and Exchange Board of India (SEBI) nod to raise money through an initial public offering (IPO).
Initial public offering (IPO) refers to the process where companies sell their shares to the public to raise equity capital from the investors. Taking opportunities in India’s booming stock market, many companies intended to list their shares, and a sizable number of them have made handsome gains.
