New Delhi: NTPC Green Energy, a wholly-owned subsidiary of NTPC Ltd., is set to launch its initial public offering (IPO) on November 19, 2024. The IPO aims to raise approximately ₹10,000 crore and will be open for bidding until November 22, 2024.
Key Details of the IPO
NTPC Green Energy has fixed its price band between ₹102 and ₹109 per share. Investors can apply for a minimum lot size of 138 equity shares, which translates to a minimum investment of approximately ₹14,076 at the upper end of the price band.
Important Dates
- IPO Opening Date: November 19, 2024
- IPO Closing Date: November 22, 2024
- Anchor Investor Bidding: Opens on November 18, 2024
- Listing Date: Expected on November 27, 2024
Shareholder and Employee Quotas
The IPO includes specific allocations for different investor categories:
- Employee Reservation: Shares worth ₹200 crore are reserved for eligible employees, who will receive a discount of ₹5 per share.
- Shareholder Reservation: Shares worth ₹1,000 crore are reserved for existing NTPC shareholders; however, they will not receive any discount.
- Allocation Breakdown:
- Qualified Institutional Buyers (QIBs): 75% of the net issue
- Non-Institutional Investors (NIIs): 15% of the net issue
- Retail Investors: 10% of the net issue
Company Overview
Incorporated in April 2022, NTPC Green Energy focuses on renewable energy projects through both organic and inorganic routes. As of August 31, 2024, the company had an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects across six states. Its portfolio includes a total capacity of 14,696 MW, comprising both operating and contracted projects.
Grey Market Premium (GMP)
As of now, the grey market premium (GMP) for NTPC Green Energy shares is reported to be between ₹9 and ₹10, indicating a potential listing gain of approximately 12% over the upper end of the price band. This reflects a slight decline from previous weeks when the GMP was as high as ₹25.
Utilization of Proceeds
The proceeds from the IPO will primarily be used for:
- Investment in NTPC Renewable Energy (NREL)
- Repayment or prepayment of outstanding borrowings by NREL
- General corporate purposes
Financial Performance
For the quarter ending June 30, 2024, NTPC Green Energy reported a net profit of ₹138.61 crore with revenue amounting to ₹607.42 crore. For the fiscal year ending March 31, 2024, the company recorded a total revenue of approximately ₹2,037.66 crore, with a profit after tax of around ₹344.72 crore.
Conclusion
The upcoming IPO of NTPC Green Energy is poised to be one of the largest in India for the year and reflects growing investor interest in renewable energy sectors. With its strong operational capacity and strategic focus on green energy projects, NTPC Green Energy aims to capitalize on India’s push towards sustainable energy solutions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should consult with certified financial advisors before making any investment decisions.
