NTPC Green Energy IPO Price Band To Be Over Rs 100, Eyes Rs 1 Lakh Crore Valuation

NTPC Green Energy Ltd., the renewable energy arm of India's largest power producer NTPC Ltd., is set to launch its initial public offering, which could be valued at Rs 1.01 lakh crore, Bloomberg reported. The IPO will offer shares in a price band likely to exceed Rs 100 per share, they added.

The book building issue is expected to open for subscription on Nov. 18 and close on Nov. 21, Bloomberg reported citing source.

The IPO consists of a fresh issue of shares and no offer-for-sale component. Proceeds from the Rs 10,000-crore IPO will primarily be used for debt reduction and general corporate purposes. Retail investors will be allowed to bid for up to Rs 2 lakh worth of shares. However, NTPC shareholders can participate in a reserved portion of the issue, allowing them to bid for up to Rs 4 lakh.

Employees of NTPC Green Energy who also hold shares in NTPC can take part in the retail, shareholder, and employee categories, raising their bidding limit to a maximum of Rs 6 lakh.

The book building issue comes as the Indian government ramps up its renewable energy ambitions, aiming to increase the country's renewable capacity to 500 GW by 2030, up from the current 200 GW.

In the April-June quarter, NTPC Green reported a net profit of Rs 138.6 crore, with revenues of Rs 578.4 crore. The company currently operates 3.34 GW in solar and 0.21 GW in wind energy, and has an additional 8.13 GW under construction, with a further 10.57 GW in its renewable energy pipeline.