NTPC Green Energy IPO: 5 Key Points To Know Ahead Of November 19 Launch
The NTPC Green Energy IPO, a book-building offer worth Rs 10,000 crore, comprises a fresh issue of 92.59 crore shares
by NDTV News Desk · NDTV.comThe initial public offering (IPO) of state-owned NTPC Green Energy Limited is set to open on Tuesday, November 19.
The renewable energy arm of the state-owned power sector company NTPC Limited aims to raise Rs 10,000 crore through its initial public offering.
The mainboard issue will close for bidding on November 22. Ahead of its launch, the company will conduct an anchor investor round on November 18.
NTPC Green Energy stock is scheduled to make its debut on the BSE and the National Stock Exchange of India (NSE).
Ahead of its launch, here are 5 things you need to know about the NTPC Green Energy IPO:
1) NTPC Green Energy IPO: Offer Size, Price Band and minimum investment
The NTPC Green Energy IPO is a Rs 10,000-crore book-building offer. The mainboard issue comprises only a fresh issuance of 92.59 crore shares and there is no offer-for-sale (OFS) component.
The IPO price band has been set between Rs 102 and Rs 108 per share.
For retail investors, the minimum application size is 138 shares, requiring an investment of ₹14,904. Small Non-Institutional Investors (sNII) need to apply for a minimum of 14 lots, or 1,932 shares, aggregating to an investment of Rs 2,08,656. For big Non-Institutional Investors (bNII), the minimum application size has been set at 68 lots, or 9,384 shares, requiring an investment of Rs 10,13,472.
The NTPC Green Energy IPO book-running lead managers include IDBI Capital Market Services Limited, HDFC Bank Limited, IIFL Securities Ltd and Nuvama Wealth Management Limited. Kfin Technologies Limited is the registrar of the issue.
2) Key dates
The subscription period for the NTPC Green Energy IPO will remain open from November 19 to November 22. The company is expected to finalist IPO allotment status on November 25.
Post the share allocation, refunds to unsuccessful applicants will be initiated on November 26 and the successful applicants will also receive shares in their Demat accounts the same day.
NTPC Green Energy IPO listing is scheduled for Wednesday, November 27.
3) NTPC Green Energy IPO's Objectives
NTPC Green Energy plans to utilise the net proceeds from its IPO for two main objectives. First, the company will invest in its wholly-owned subsidiary, NTPC Renewable Energy Limited (NREL), to repay or prepay, either in full or in part, certain outstanding borrowings. Second, the funds will be allocated for general corporate purposes.
4) Key Financials
NTPC Green Energy Limited has shown significant increases in both total income and profit after tax (PAT) over the past year. For the financial year ending March 31, 2024, the company's total income surged by 1,094 per cent, reaching Rs 2,037.66 crore, compared to Rs 170.63 crore in the preceding fiscal. Its net profit also more than doubled to Rs 344.72 crore in FY24 compared to Rs 171.23 crore in FY23.
5) About NTPC Green Energy Limited
NTPC Green Energy Limited was established in April 2022. The company is a fully-owned subsidiary of NTPC Limited, focused on the renewable energy sector. It is engaged in the construction of 31 renewable energy projects across seven states. NTPC Green Energy serves 15 off-takers through 37 solar and nine wind projects. Backed by NTPC Limited in large-scale project executions, the company benefits from strong relationships with off-takers, suppliers and its solid financial standing.