NTPC Green Energy, a subsidiary of NTPC Ltd, is set to launch one of the biggest IPOs of 2024, aiming to raise Rs 10,000 million through an all-new issue. This initial public offering (IPO) will make NTPC Green Energy the third largest IPO of the year after Hyundai Motors India’s Rs 28,756 crore IPO and Swiggy’s Rs 11,327 crore issue.

NTPC Green Energy IPO will open for subscription on November 19, 2024 and close on November 22, 2024. The allotment is expected to be completed by November 25, 2024 and the stock is scheduled to list on BSE and NSE in November. 27, 2024.

NTPC GREEN ENERGY IPO Details

The price range for NTPC Green Energy IPO has been set between Rs 102 and Rs 108 per share. Retail investors can participate with a minimum application size of 138 shares amounting to Rs 14,904 crore. For smaller non-institutional investors (sNII), the minimum application is 14 lots (1,932 shares), totaling Rs 208,656 crore. Meanwhile, larger non-institutional investors (bNII) will be able to apply for 68 lots (9,384 shares) with a minimum investment of Rs 1,013,472.

The offering will be managed by leading accounting managers Idbi Capital Market Services Limited, HDFC Bank Limited, IIFL Securities Ltd and Nuvama Wealth Management Limited, with Kfin Technologies Limited acting as the registrar.

COMPANY’S HISTORY

Established in April 2022, NTPC Green Energy is a wholly owned subsidiary of NTPC Ltd and focuses on renewable energy projects through both organic growth and acquisitions. As of August 31, 2024, the company has 3,071 MW of operational capacity from solar projects and an additional 100 MW from wind projects spread across six states. NTPC Green Energy aims to expand its clean energy portfolio by supporting India’s green energy goals.

NTPC Green Energy, backed by Ministry of Power’s NTPC Ltd, is allocating shares worth Rs 200 crore for eligible employees who will get a discount of Rs 5 per share as part of this IPO. The company will open its anchor book on November 18, one day before its official IPO launch.

For the first quarter ended June 30, 2024, NTPC Green Energy reported a net profit of Rs 138.61 billion on revenue of Rs 607.42 billion. For the financial year 2023-24, the company posted a net profit of Rs 344.72 billion with total revenue reaching Rs 2,037.66 billion, demonstrating its positive growth in the renewable energy sector.

LATEST GMP

NTPC Green Energy’s IPO is active in the gray market but its premium has seen some decline.

The current GMP is around Rs 9-10, indicating a potential listing gain of around 12% over the upper end of the price band. This is a decline from the Rs 25 GMP reported just a day ago, reflecting some cooling in investor sentiment ahead of listing.