NTPC Green Sets Price Band For India's Third Largest IPO This Year

The initial public offering of the state-run NTPC Ltd.'s green energy arm will open for bidding next week at a price band of Rs 102 to Rs 108 per share. The issue opens for subscription on Nov. 19 and will close on Nov. 22.

The bidding for the Rs 10,000 crore IPO can be made for a minimum lot of 138 shares or in multiples thereof, according to the price band advertisement on Wednesday.

The anchor book issue will be open for subscription on Nov. 18. Shares will be listed on the BSE and NSE.

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 renewables capacity to 500 GW by 2030, from around 200 GW at present.

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, totaling a maximum of Rs 6 lakh.

In 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.