NTPC Green Energy IPO: The mainboard initial public offering (IPO) of India's largest power producer, NTPC's wholly-owned subsidiary, received a decent response from investors on the second day of subscription, driven by retail bidders. The public issue of the leading renewable energy producer hit India's primary market on Tuesday, November 19, to open for a three-day subscription period and will close on Friday, November 22, 2024.
NTPC Green Energy IPO has reserved not less than 75 per cent of the shares in the public issue for qualified institutional buyers (QIB), 15 per cent for non-institutional institutional investors (NII), and 10 per cent of the offer is reserved for retail investors. Employees have been reserved equity shares aggregating up to 20 crore, and a discount of ₹5 per share is offered to eligible employees.
Follow Live Updates: NTPC Green Energy IPO Day 2 LIVE: Issue booked 93% on second day; Check GMP, subscription status, more.
On the second day of subscription, NTPC Green Energy IPO was subscribed 93 per cent by the end of the session. Retail investors bid the highest at 2.38 times; the portion reserved for NIIs was booked 34 per cent, and the portion reserved for QIBs was booked 75 per cent. According to BSE data, the IPO received 54,97,38,180 share applications against 59,31,67,575 shares offered on Thursday. On the first day, the issue was booked 33 per cent.
NTPC Green Energy's IPO GMP today is +0. According to investorgain.com, this indicates that NTPC Green Energy's share price was trading flat in the grey market. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of NTPC Green Energy shares is indicated at ₹108 apiece, which is the same as the IPO price.
According to the recent 17 sessions of grey market activities, the present GMP indicates a downward trend. The minimum GMP recorded is Re 0, whereas the maximum GMP reached ₹25, as per the experts at investorgain.com. 'Grey market premium' indicates investors' readiness to pay more than the issue price.
NTPC Green Energy's IPO, valued at ₹10,000 crore, will consist solely of newly issued equity shares, with no component for offer for sale (OFS). The price band has been fixed at ₹102 to ₹108 per equity share with a face value of ₹10. The floor price and the cap price are 10.20 times and 10.80 times the face value of the equity shares, respectively.
Also Read: NTPC Green Energy IPO: Price band set at ₹102-108 per share; check issue details, key dates, more
The lot size is 138 equity shares, multiples of 138 equity shares thereafter. According to NTPC Green Energy, the proceeds from this new issuance, totalling ₹7,500 crore, will be directed towards investments in NTPC Renewable Energy Ltd (NREL), repaying or prepaying certain existing debts associated with NREL, and general corporate needs.
IDBI Capital Markets & Securities Ltd, HDFC Bank Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited are the lead managers handling this offering, while KFin Technologies Limited will act as the registrar.
Before the IPO launch, NTPC Green Energy had garnered ₹3,960 crore from anchor investors. The company's promoters are the President of India, who acts through the Ministry of Power, Government of India, and NTPC Limited.
Also Read: IPO-bound NTPC Green Energy targets investments worth ₹1 lakh crore in wind, solar assets by FY27
Tentatively, the NTPC Green Energy IPO basis of allotment of shares will be finalised on Monday, November 25. The company will initiate refunds on Tuesday, November 26. The shares will be credited to the Demat account of allottees on the same day following the refund. NTPC Green Energy's share price is likely to be listed on BSE and NSE on Wednesday, November 27.
NTPC Green Energy, promoted by NTPC Ltd, is recognized as the largest public sector company in renewable energy (excluding hydro) in terms of operational capacity and power generation for Fiscal 2024, as indicated by a CRISIL report mentioned in the draft red herring prospectus (DRHP).
As of June 30, 2024, NTPC Green was collaborating with 15 off-takers on 37 solar projects and 9 wind projects. It is constructing 31 renewable energy projects across 7 states, totalling 11,771 MW that have been contracted and awarded. Furthermore, it has been operating 2,925 MW through 14 solar projects and 2 wind projects.
Also Read: NTPC Green Energy IPO targets $12 billion valuation in one of India’s biggest renewable listings
NTPC Green Energy has experienced a revenue growth rate of 46.82 per cent, increasing from ₹910.42 crore in fiscal 2022 to ₹1,962.60 crore in fiscal year 2024. The profit after tax has seen a compound annual growth rate (CAGR) of 90.75 per cent, rising from ₹94.74 crore in fiscal 2022 to ₹344.72 crore in fiscal 2024.
For the quarter ending June 30, 2024, NTPC's clean energy division's operational revenue reached ₹578.44 crore, while profit after tax was ₹138.61 crore. Both amounts were calculated on a restated basis.
NTPC Green Energy is recognised as a central public sector enterprise with 'Maharatna' status. It concentrates on renewable energy through solar and wind power projects across more than six states. As per the red herring prospectus (RHP), the company's listed peers are Adani Green Energy Ltd (with a P/E of 259.83) and ReNew Energy Global PLC (with a P/E of 47.05).
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