The much-awaited ₹10,000-crore IPO of NTPC Green Energy opens today for public subscription at a price band of ₹102-108. The IPO is entirely fresh issue by the largest renewable energy public sector enterprise. Before the launch of IPO, NTPC was the only shareholder with 100 per cent stake.
While 75 per cent of the IPO portion is reserved for Qualified Institutional Buyers (QIBs), 15 per cent for Non-Institutional Investors (NIIs) and the remaining 10 per cent for Retail Investors. The bid lot size for the IPO is 138 Equity Shares and in multiples thereof and the IPO will close on November 22.
Besides, the company has reserved ₹200 crore worth shares for its employees and ₹1,000 crore (or 10 per cent of the issue size) for NTPC shareholders. Employees will get these shares a discount of ₹5 a share to the final issue price, it said.
As per NSE data, up to 92.59 equity shares will be offered for subscription.
Meanwhile, as part of IPO process, NTPC Green Energy has raised ₹3,960 crore via anchor book on Monday with LIC being the biggest investor worth ₹500 crore.
The company has finalized allocation of nearly 36.67 crore equity shares to anchor investors at a price of ₹108 per share, the subsidiary of NTPC said in its filing to exchanges.
Marquee global institutional investors that became shareholders in NTPC Green Energy via anchor book included New World Fund, International Growth and Income Fund, Goldman Sachs, Morgan Stanley, New York State Teachers Retirement System, Government of Singapore, Monetary Authority of Singapore, T Rowe, Abu Dhabi Investment Authority, and BNP Paribas.
As per the exchange data filing, Life Insurance Corporation of India was allotted 12.63 per cent, New World Fund 5.29 per cent, Goldman Sachs India 5.70 per cent and Government of Singapore 5.31 per cent, among the top anchor investors.
Domestic institutional investors such as ICICI Prudential Mutual Fund, Nippon Life India, Kotak AMC, Aditya Birla Sun Life AMC, DSP Mutual Fund, Whiteoak Capital, Canara Robeco MF, Invesco India, SBI Life Insurance, HDFC Life Insurance, Edelweiss Trusteeship, Baroda BNP Paribas MF, HSBC MF, Aditya Birla Sun Life Insurance, Allianz India Equity, Bandhan Mutual Fund, PI Opportunities AIF, Bank of India MF, Union MF, ITI MF, and Canara HSBC Life Insurance also bought shares. of the company.
Out of the total allocation of 36.67 crore equity shares to the anchor investors, 14.53 crore shares were allocated to 16 domestic mutual funds through a total of 72 schemes,” NTPC Green Energy said.
NTPC Green Energy is going to utilize ₹7,500 crore out of the net issue proceeds for repaying debt of its subsidiary NTPC Renewable Energy. Additionally, the funds will help the company repay or prepay outstanding borrowings and meet general corporate purposes.
NTPC green energy limited is one of the top players in renewable energy players in India and aims to strengthen its position in core solar and wind energy businesses and focus on new geographies and new offtaker customers. The company is also investing in new energy solutions like green hydrogen, green chemicals and storage capabilities and solutions.
NTPC Green Energy is a ‘Maharatna’ central public sector enterprise spread across more than six states. As of August 2024, the company’s operational capacity comprised 3,071 MW from solar projects and 100 MW from wind projects.
Overall, the NTPC group aims to reach 60 GW of renewable energy capacity by 2032. Currently, it has 3.5 GW of installed capacity and over 28 GW in progress.
IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities and Nuvama Wealth Management are the book running lead managers to the issue.