NTPC Green Energy Limited (NGEL), a wholly-owned subsidiary of NTPC Limited, has launched its Initial Public Offering (IPO) today, November 19, 2024. The public issue, which seeks to raise Rs.10,000 crore, marks a significant step for the renewable energy arm of India’s largest power producer. The bidding for the IPO will remain open until Friday, November 22, 2024.
Key Details About the NTPC Green Energy IPO
1. IPO Size and Structure
The IPO comprises a fresh issue of up to 92.68 crore equity shares. Importantly, there is no offer-for-sale (OFS) component in this issue. A portion of shares worth Rs.200 crore is reserved for NTPC employees, who will also enjoy a Rs.5 per share discount.
2. Price Band and Minimum Investment
The price band for the issue is set between Rs.102 and Rs.109 per share. Retail investors can apply for a minimum lot size of 138 shares, requiring an initial investment of approximately Rss.14,076 at the lower price band.
3. Anchor Investment and Objectives
NTPC Green Energy completed its anchor investment round on November 18, 2024, raising Rs.3,960 crore. The company will use the proceeds from the IPO to fund its wholly-owned subsidiary, NTPC Renewable Energy Limited, repay loans, and support general corporate purposes.
4. Financial Performance
The company reported a 1,094% increase in total income to Rs.2,037.66 crore for FY 2023-24, with a net profit of Rs.344.72 crore. This reflects robust growth in the renewable energy segment, with operational capacity reaching 3,071 MW from solar projects.
5. Listing Date
The company will finalize share allotments on November 25, issue refunds on November 26, and credit shares the same day. Trading will commence on November 27.
Why It Matters?
NTPC Green Energy’s IPO offers a promising opportunity, capitalizing on India’s growing renewable energy sector and investor interest.
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