National Thermal Power Corporation (NTPC) green energy, a subsidiary of NTPC, is all set to launch its initial public offering (IPO) on Tuesday and make its D-street debut. Ahead of the IPO, the grey market premium (GMP) for NTPC Green Energy shares is around Rs 1-2, indicating a 1 per cent premium over the issue price. The company has fixed a price band of Rs 102-108 per share for its IPO.
The green energy company aims to raise Rs 10,000 crore from the public issue and plans to utilise the sum towards repayment of some outstanding loans. The IPO will comprise only the fresh issue of equity shares with no offer for sale (OFS). The IPO has reserved 75 per cent of the issue for the institutional investors while 15 per cent and 10 per cent are kept for non-institutional and retail investors, respectively.
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“We intend to utilise a portion of our net proceeds aggregating to Rs 75,000 million in the form of investment in equity or debt or a combination of both or in any other manner as may be decided by our Board,” said the company in its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi).
The company in the DRHP filing mentioned that IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the book-runners for the public issue.
“We believe NTPC Green Energy Ltd IPO brings investors an opportunity to invest in a leading player of India’s renewable energy sector, backed by the formidable resources and expertise of NTPC Ltd,” said Research Analyst at Mehta Equities Rajan Shinde. “Hence, looking at attributes we recommend only risk-taking investors to “SUBSCRIBE” the NTPC Green Energy Ltd IPO for long term perspective only,” he added.
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Following the Hyundai Motors India and Swiggy IPOs, NTPC Green Energy is the third largest public issue of 2024. NTPC is one of the biggest renewable energy public sector enterprises in terms of operating capacity and power generation and is one of the top 10 clean energy companies in the country. As of June 30, 2024, the company’s portfolio comprised 14,696 MWs, including 2,925 MWs of operating projects. Apart from this, the renewable energy firm has around 10,975 MWs of capacity under pipeline.
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