NTPC Green Energy has announced to launch its initial public offering (IPO) on Tuesday, November 19 and the three-day bidding for the issue shall conclude on Friday, November 22. The PSU player has fixed its price band in the range of Rs 102-109 per shares for which investors can apply for a minimum of 138 equity shares and its multiples thereafter.
Incorporated in April 2022, NTPC Green Energy is a wholly-owned subsidiary of NTPC Ltd. NTPC Green is a renewable energy company that focuses on undertaking projects through organic and inorganic routes. The company 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,
NTPC Green Energy, promoted by NTPC Ltd under Ministry of Power, is looking to raise Rs 10,000 crore via its initial stake sale, which is entirely a fresh issue of up to 92.68 crore equity shares. The company has reserved shares worth Rs 200 crore for its eligible employees, who will get a discount of Rs 5 per share. Anchor book opens on Monday, November 18.
Similarly, shares worth Rs 1,000 crore have been reserved for shareholders of NPTC. However, they will not get any discount on the issue. Of the net offer, 75 per cent of the issue shall be allocated to qualified institutional bidders, while non-institutional and retail investors will have only 15 per cent and 10 per cent of allocation respectively.
The net proceeds from the issue shall be utilized towards investment in the wholly owned Subsidiary, NTPC Renewable Energy (NREL); for repayment and/or prepayment in full or in part of certain outstanding borrowings availed by NREL; and general corporate purposes.
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 Green Energy will be the third largest IPO of 2024, following Hyundai Motors India (Rs 28,756 crore) and Swiggy (Rs 11,327 crore). NPTC Green has been consistently losing its ground in the unofficial market as its grey market premium (GMP) has dropped to Rs 9-10 levels, signalling a listing pop of 12 per cent over the upper end of price band. GMP stood at Rs 25 a day ago.
For the quarter ended on June 30, 2024, NTPC Green Energy reported a net profit of Rs 138.61 crore with a revenue of Rs 607.42 crore. The company clocked a bottomline of Rs 344.72 crore with a revenue of Rs 2,037.66 crore for the financial year 2023-24.
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 at both BSE and NSE on Wednesday, November 27.