The NTPC Green Energy IPO is a significant financial event, drawing attention from investors nationwide. With a total issue size of ₹10,000 crore, this IPO is a 100% fresh issue involving 92.59 crore shares. Below is an in-depth look into the key details, timelines, and investor opportunities surrounding this much-anticipated IPO.
Price Band and Lot Size
The price band for the IPO is set between ₹102 to ₹108 per share. The minimum application size is 138 shares, requiring an investment of ₹14,904 for retail investors.
Employee Reservation and Discount
NTPC Green Energy has reserved 19,417,476 shares for its employees at a ₹5 discount per share.
IPO Management
The IPO is managed by prominent book-running lead managers:
KFin Technologies Limited serves as the registrar for the issue.
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The total 92.68 crore shares are divided into specific categories, ensuring opportunities for various investor groups:
| Investor Category | Shares Offered | Percentage |
|---|---|---|
| Anchor Investors | 36,66,66,666 shares | 39.56% |
| Qualified Institutional Buyers (QIB) | 24,44,44,445 shares | 26.37% |
| Non-Institutional Investors (NII) | 12,22,22,222 shares | 13.19% |
| Retail Individual Investors (RII) | 8,14,81,481 shares | 8.79% |
| Employees | 1,94,17,476 shares | 2.1% |
| Other Categories | 9,25,92,593 shares | 9.99% |
On November 18, 2024, NTPC Green Energy raised ₹3,960 crore from anchor investors. The total shares offered under the anchor investor portion were 366,666,666. These shares are under a lock-in period until December 25, 2024, for 50% of the shares, while the remaining 50% is lock until February 23, 2025.
Incorporat in April 2022, NTPC Green Energy Limited is a wholly owned subsidiary of NTPC Limited. It focuses on renewable energy projects, including solar, wind, and hydropower.
NTPC Green Energy Limited has demonstrated remarkable financial growth, with revenues increasing by 1,094.19% and profit after tax (PAT) growing by 101.32% between FY2023 and FY2024.
| Period | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|
| Total Assets | 32,408.30 | 27,206.42 | 18,431.40 |
| Revenue | 1,132.74 | 2,037.66 | 170.63 |
| Profit After Tax (PAT) | 175.30 | 344.72 | 171.23 |
The company aims to utilize the net proceeds from the IPO for the following purposes:
On Day 1 (November 19, 2024), the IPO was subscribed 0.36 times overall. The subscription details are as follows:
| Category | Subscription (times) |
|---|---|
| QIB | 0.00 |
| NII | 0.17 |
| Retail | 1.47 |
| Employee | 0.19 |
| Others | 0.63 |
NTPC Green Energy’s IPO presents a unique opportunity for long-term investors to participate in India’s renewable energy growth story. While the IPO is priced aggressively based on FY2025 annualized earnings, the company’s strong backing, operational excellence, and significant portfolio make it a viable option for cash-surplus investors with a long-term perspective.
Investors are advis to consult the Red Herring Prospectus (RHP) and stay updated on the official websites for the latest developments.
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The NTPC Green Energy IPO is a landmark offering in the renewable energy sector, reflecting the growing emphasis on sustainable power solutions. With its strong financials, expansive portfolio, and backing from NTPC Limited, this IPO could be a strategic addition to an investor’s portfolio. However, due diligence and a clear understanding of one’s financial goals are essential before making investment decisions.
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