NTPC Green Energy’s ₹10,000 Crore IPO to Launch Next Week: Key Details, Price Band, and Modest GMP Signal

The NTPC Green Energy IPO, valued at ₹10,000 crore, is set to open for subscription from November 19 to November 22, 2024, marking one of the most anticipated IPOs in the renewable energy sector. Here are the essential details:

1. IPO Structure: This offering is entirely a fresh issue worth ₹10,000 crore, with no shares offered for sale by existing shareholders. Approximately 98.14 crore equity shares will be available for subscription.
2. Price Band: The IPO price is set between ₹102 and ₹108 per share. Eligible shareholders of NTPC Ltd. will receive a ₹5 per share discount.
3. Bid Lot Size: Investors can bid in multiples of 138 shares. The maximum investment limit for retail investors is ₹2 lakh, while eligible employees can invest up to ₹5 lakh.
4. Reservation Quotas:
   • Employees: ₹200 crore worth of shares are reserved for NTPC Green Energy employees.
   • NTPC Ltd. Shareholders: ₹1,000 crore worth of shares are reserved.
   • Other Investors: 75% of the remaining shares are allocated to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 10% to retail investors (RIIs).
5. IPO Dates: Anchor investor bidding will commence on November 18, a day before the IPO opens. Allotment is expected to be finalized on November 22, with refunds and shares credited to accounts by November 25. The anticipated listing on BSE and NSE will likely occur on November 26 or 27.
6. Grey Market Premium (GMP): As of November 15, the GMP for NTPC Green Energy shares is ₹2.50, suggesting an estimated listing price of ₹110.5, which reflects a modest expected listing gain of approximately 2.31%.
7. Use of IPO Proceeds: Proceeds from the IPO will primarily be used for debt repayment in NTPC Renewable Energy Ltd. (NREL), a wholly owned subsidiary, with ₹7,500 crore earmarked for this purpose. The remaining funds will go towards general corporate expenses and development.
8. About NTPC Green Energy: A wholly owned subsidiary of NTPC Ltd., NTPC Green Energy is India’s largest public-sector renewable energy company, excluding hydropower. As of September 30, 2024, it operates 3,220 MW of solar and 100 MW of wind capacity across six states, focusing on utility-scale renewable projects for PSUs and Indian corporations. The company secures power generation through long-term Power Purchase Agreements (PPAs) with central and state agencies or utilities.

This IPO provides a unique investment opportunity in India’s growing renewable energy sector, though the current GMP suggests moderate listing gains.

Disclaimer: Investing in IPOs carries market risks, including potential capital loss. Past GMP trends do not guarantee future returns. Please review all details, consult a financial advisor, and assess risk tolerance before investing.