On its opening day, November 19, the NTPC Green Energy IPO achieved a 33% subscription rate, with bids totaling 19.48 crore shares out of the 59.3 crore shares offered. Retail individual investors (RIIs) exhibited robust demand, subscribing to 133% of their allocated 8.6 crore shares. Non-institutional investors (NIIs) placed bids for 2 crore shares, compared to their allocation of 12.9 crore shares. In contrast, qualified institutional buyers (QIBs) showed limited interest, subscribing to just over 87,906 shares out of the 25.9 crore reserved for them, while the employee quota saw a 17% subscription rate.
The initial public offering (IPO) of NTPC Green Energy Limited (NGEL), a subsidiary of the National Thermal Power Corporation (NTPC), opened on November 19, 2024, and will close on November 22, 2024. This significant public offering seeks to raise approximately ₹10,000 crore by issuing 92.6 crore shares, with each share priced between ₹102 and ₹108. The IPO has drawn considerable attention due to NTPC Green Energy’s focus on renewable energy, marking it as one of India’s largest green energy IPOs this year.
The allocation of shares includes 75% reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors, along with a reserved quota for NTPC employees, who are also offered a ₹5 discount per share. Kfin Technologies Limited serves as the IPO’s registrar, while banks including HDFC Bank and IIFL Securities are among the lead managers.
NTPC Green Energy, a rapidly expanding player in the renewable sector, holds an operational portfolio of 3,220 MW in solar and 100 MW in wind energy, with a further 13,576 MW under development. Proceeds from the IPO are planned for investment in NTPC Renewable Energy Limited, loan repayments, and general corporate purposes, supporting NTPC’s ongoing transition towards sustainable energy.
The shares are expected to list on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) by November 27, 2024. However, the Grey Market Premium (GMP) for the IPO has seen a recent dip to ₹1 per share, indicating a cautious but steady interest from investors.
This IPO is a critical move for NTPC in India’s green transition, reflecting both investor interest in renewable energy and NTPC’s long-term commitment to sustainable growth.
