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The IPO saw bids for 14.09 crore shares, reflecting a 0.24 times subscription rate overall, according to data from the NSE as of 1:45 pm.
Retail Individual Investors (RIIs) showed significant interest, subscribing 100% the shares reserved for them, while Non-institutional investors subscribed to 0.09 times their allotted portion. Qualified Institutional Buyers (QIBs) are yet to start bidding for the public offer.
The price band for the issue has been fixed at ₹102-108 per share, where investors can bid for 138 shares in one lot and in multiples thereafter.
The grey market premium (GMP) for NTPC Green Energy‘s initial share sale has dropped as weak stock market sentiments weigh on investor appetite ahead of the issue’s opening today.
The issue with a face value of ₹10 per equity share consists entirely a fresh issue of approximately 92.6 crore shares, with no Offer For Sale (OFS) component.
About 75% of the issue has been reserved for institutional investors, 15% for non-institutional investors, and the remaining 10% for retail investors. Eligible employees can bid for shares with a ₹5 per share discount, with ₹200 crore worth of shares allocated under the employee quota.
Additionally, shares worth ₹1,000 crore will be set aside for existing NTPC shareholders under the shareholder reservation.
Proceeds from the fresh issue to the extent of ₹7,500 crore will be used for investment in its wholly owned subsidiary, NTPC Renewable Energy Ltd. (NREL) for repayment, in full or in part of certain outstanding borrowings availed by NREL; and general corporate purposes.
This IPO ranks as the third largest of 2024, following Hyundai Motor India’s ₹27,870 crore issue and Swiggy’s ₹11,300 crore offering.
NTPC Green Energy is a wholly owned subsidiary of NTPC Ltd and is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity.
In FY24, Renewable Energy Sales contributed 96.17%, Consultancy, project management and supervision fee contributed 0.51% and other operating revenues recognized from Government Grants contributed 3.32% to the revenue from operations.
As of September 30, 2024, the company’s “Portfolio” consisted of 16,896 MWs including 3,320 MWs of operating projects and 13,576 MWs of contracted and awarded projects.
As of September 30, 2024, the company had 17 offtakers across 41 solar projects and 11 wind projects.
IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the book-running lead managers for the issue, while Kfin Technologies is the registrar.
The allotment for the NTPC Green Energy IPO is expected to be finalised on November 25, while the company will list on BSE, NSE with tentative listing date fixed as November 27, 2024.
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