NTPC Green Energy IPO GMP Indicates 8% Listing Gains Ahead Of Launch

NTPC Green Energy Ltd., the renewable arm of India's largest power producer NTPC Ltd., is set to launch its initial public offering on Nov. 19, allowing investors to subscribe until Nov. 22. As of 7:58 a.m. on Wednesday, the company's shares were trading at a grey market premium of Rs 9, signalling a premium of 8.33% over the upper end of the price band, which has been set at Rs 108.

Notably, GMP is not an official price quote for the stock and is based on speculation.

The estimated listing price of NTPC Green Energy shares is currently Rs 117.

NTPC Green's initial public offering, the third largest offer this year, is aimed at raising a total of Rs 10,000 crore. The price band for the IPO is set between Rs 102 to Rs 108 per share, with a minimum application size of 138 shares. The anchor book issue will be open for subscription on Nov. 18.

The IPO will comprise an entirely fresh issue with no offer-for-sale component. The company will use proceeds of the offering for repayment of debt and general corporate purposes.

The issue is being launched at a time when India is looking to ramp up its renewable energy sector. The government has set a target to increase the capacity of renewables to 500 GW by 2030, from around 200 GW currently.

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.

Employees of NTPC Green Energy, who also hold shares in NTPC, are further advantaged, as they can bid in the shareholder, employee, and retail portions, totalling a maximum of Rs 6 lakh.

In the April-June quarter, NTPC Green’s net profit was Rs 138.6 crore on total revenue from operations of Rs 578.4 crore. In fiscal 2024, the net profit was Rs 344.7 crore on revenue from operations of Rs 1,962.6 crore.

NTPC Green’s renewable energy capacity, including NTPC and NTPC Renewable Energy, stands at 3.34 GW of solar and 0.21 GW of wind. While 8.13 GW is under construction, the company has a pipeline of 10.57 GW of renewable capacity.

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.