NTPC Green Energy IPO opens for the public today. The initial public offering of the state-run energy company comprises a fresh issue of equity and the firm plans to target a valuation of nearly Rs 1 lakh crore from the offering.
The company is a subsidiary of NTPC Ltd and intends to raise Rs 10,000 crore from the maiden offering. The issue opens for subscription on November 19 and will close for the public on November 22.
The firm has priced the IPO in the range of Rs 102 to Rs 108 per share. Investors can place bids for a minimum of 138 shares and in multiples of thereafter. Minimum investment required from retail investors to partake in the issue is Rs 14,904.
At the upper end of the price band, the firm plans to raise Rs 10,000 crore from the book-built issue including a fresh equity of 92.59 crore equity shares.
The issue has reserved 75 per cent quota for Qualified Institutional Buyers (QIBs), while non-institutional investors (NIIs) can place bids for 15 per cent of the overall listing. The remaining 10 per cent has been set aside for retail investors.
The firm intends to utilise the proceeds raised from the issue for investment in its wholly-owned subsidiary, NTPC Renewable Energy Ltd (NREL) and for general corporate purposes.
The allotment of the listing will be finalised on November 25, 2024, while the firm will make its debut in the stock market on November 27, 2024. The shares of NTPC Green Energy will be listed on both BSE and NSE.
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The book running lead managers of the issue include IDBI Capital Market Services, HDFC Bank, IIFL Securities, and Nuvama Wealth Management, while Kfin Technologies is acting as the IPO registrar.
The issue is trading at a muted premium of 1 per cent in the grey market, indicating a lack of confidence among investors. However, it remains to be seen if the grey market premium increases in the subscription period. Notably, the grey market is an unofficial trading space running parallel to the stock market and a premium in the grey market shows investors' optimism regarding a listing.
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