The initial public offering (IPO) of NTPC Green Energy is scheduled to open in the third week of November, sources related to the matter told Business Today. According to the sources, who requested anonymity, said that the IPO may be launched for bidding on Monday, November 18. However, the official information shall be followed soon.
NTPC Green Energy, a wholly-owned subsidiary of NTPC Ltd, is likely to raise Rs 10,000 crore via IPO, which is entirely a fresh share sale. The PSU player is likely to announce its price band later next week. This will be the third IPO raising over Rs 10,000 crore in 2024.
Before NTPC Green, IPOs Hyundai Motor India Ltd (Rs 27,856 crore) and Swiggy Ltd (Rs 11,327 crore) hit Dalal Street recently. Hyundai's largest ever IPO was listed in October, while Swiggy's issue will close on Friday, November 8 and the company will make its Dalal Street debut next week.
Incorporated in April 2022, NTPC Green Energy is a renewable energy company that focuses on undertaking projects through organic and inorganic routes. The company is yet to file its red herring prospectus (RHP), which sources said is likely to happen this week only.
The initial public offering of NPTC Green will have a reservation for shareholders of NPTC Ltd also, the parent company as well. Interestingly, the eligibility for shareholder's quota shall be determined as of date of filing the RHP, which shall be updated with the exchanges by the parent company.
Besides allocation for NPTC shareholders and eligible employees of the company, 75 per cent of the net offer shall be eligible for the qualified institutional investors. Non-institutional investors (NIIs) will have 15 per cent shares and retail investors have 10 per cent of shares reserved in the net offer.
NTPC Green Energy had an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects across six states as of August 31, 2024. The company's portfolio consisted of 14,696 MW, including 2,925 MW of operating projects and 11,771 MW of contracted and awarded projects. It had 15 off-takers across 37 solar projects and 9 wind projects.
NTPC management aims to unlock significant value by listing the subsidiary NTPC Green Energy. NTPC Green is planning to hold roadshows in multiple locations across India and abroad, including Mumbai, London, the United States, Singapore and more to attract investments, as suggested in some media reports.
IDBI Capital Market Services, HDFC Bank, IIFL Securities and Nuvama Wealth Management are the book running lead managers of the NTPC Green Energy IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.