The initial public offering of NTPC Green Energy Ltd. was subscribed 2.42 times on its final day of bidding, with retail investors leading the demand with 3.44 times subscription, as per the data shared by the BSE.
Till its second day of bidding on Thursday, the issue was subscribed 93%.
The grey market premium on the IPO, however, edged up only marginally. It stood at Rs 1 per share as of 5:56 p.m., as compared to nil earlier in the day, according to InvestorGain platform.
The Rs 10,000-crore IPO of NTPC Green is entirely a fresh issue with no offer-for-sale component. The company offered a total of 92.6 crore shares.
The IPO is India's third largest public issue this year after Hyundai Motor India Ltd. and Swiggy Ltd. The company raised Rs 3,960 crore from anchor investors a day before its initial public offering opened for bidding.
The price band was fixed between Rs 102 and Rs 108 per share. At the upper price band, the company is valued at a market capitalisation of Rs 91,000 crore.
Of the total IPO size, 75% is reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% is to be allotted to retail individual investors. Retail investors can bid up to Rs 2 lakh in the offering. However, NTPC shareholders can participate in the shareholders' reservation portion, raising their bidding limit to Rs 4 lakh.
NTPC Green Energy IPO Details
Issue opens: Nov. 19.
Issue closes: Nov. 21.
Total offer size: Rs 10,000 crore.
Fresh issue size: Rs 10,000 crore.
Offer for sale size: Nil.
Face value: Rs 5 apiece.
Fixed price band: Rs 102–108 per share.
Lot size: 138 shares.
Listing: NSE, BSE.
Use Of Proceeds
NGEL plans to utilise 75% or Rs 7,500 crore of the IPO proceeds towards debt repayment. The company plans to repay debt worth Rs 4,000 crore in the current fiscal and Rs 3,500 crore in the next fiscal.
The balance 25% will be used for general corporate purposes.
Business
NTPC Green Energy is NTPC Ltd.'s renewable energy arm, which was incorporated in 2022.
The company's total portfolio stands at 25.67 gigawatts, with an operational portfolio of 2.93 GW. Its contracted and awarded capacity stands at 14.7 GW and projects under pipeline stand at 10.98 GW. Its total portfolio consists of 20.32 GW of solar capacity and 5.35 GW of wind capacity.
As of financial year 2024, NGEL's market share, depending on how many bids it won, stood at 7%. This has declined from 18% in fiscal 2022, according to Morgan Stanley.
The company also plans to expand its portfolio and intends to install battery energy storage systems and hybrid contracts. It is also developing a green hydrogen hub in Andhra Pradesh.
NTPC Green Energy IPO Subscription Status: Day 3
The IPO was subscribed 2.42 times, as of 7:00 p.m. on Friday.
Qualified institutional buyers: 3.32 times.
Non-institutional investors: 0.81 times.
Retail investors: 3.44 times.
Portion reserved for employees: 0.8 times.
Portion reserved for shareholders: 1.6 times.
NTPC Green Energy IPO GMP Today
NTPC Green Energy IPO's grey market premium was Rs 1, as of 5:56 P.m., as per InvestorGain. This took the estimated listing price to Rs 109, barely any higher as compared to the upper band of the IPO price of Rs 108.
GMP is not an official price quote for the stock and is based on speculation.
Watch The IPO Adda Here
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.
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