NTPC Green Energy IPO: Anchor Investors Buy Shares Worth Rs 3,960 Crore
NTPC Green Energy Ltd. allocated 36.66 crore shares to 107 anchor investors at Rs 108 each, including LIC, which secured a Rs 500 crore stake. The IPO aims to raise Rs 10,000 crore via a fresh issue.
NTPC Green Energy Ltd. raised Rs 3,960 crore from anchor investors a day before its initial public offering opens for bidding. The company allotted 36.66 crore shares at an issue price of Rs 108 apiece to 107 anchor investors, according to an exchange filing on Monday.
Life Insurance Corp emerged as the top investor, securing 12.63% of the total issue for Rs 500 crore. Other marquee investors include Goldman Sachs India, cornering a 5.7% share for Rs 226 crore; the Government of Singapore, bagging 5.31% for Rs 210 crore; and Capital Group affiliate New World Fund Inc., taking 5.29% of the anchor issue for Rs 209 crore.
Domestic mutual funds secured 39.65% of the anchor portion for Rs 1,570 crore. ICICI Prudential Mutual Fund, Nippon Life India, Kotak Mahindra Mutual Fund, and Invesco India are among the 16 institutions that participated in the anchor round.
The lead book running managers to the issue were IDBI Capital Markets and Securities Ltd., HDFC Bank Ltd., IIFL Capital Services Ltd., and Nuvama Wealth Management Ltd.
NTPC Green Energy IPO will hit the primary market on Tuesday. The company plans to sell shares worth Rs 10,000 crore, entirely via a fresh issue of approximately 92.6 crore shares.
The IPO is set to become India's third largest IPO this year after Hyundai Motor India Ltd. and Swiggy Ltd.
The price band is 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.
Out 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.
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.
NTPC Green Energy IPO will hit the primary market on Tuesday. The company plans to sell shares worth Rs 10,000 crore, entirely via a fresh issue of approximately 92.6 crore shares.
The IPO is set to become India's third largest IPO this year after Hyundai Motor India Ltd. and Swiggy Ltd.
The price band is 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.
Out 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.
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.
