NTPC Green Energy's Rs10,000-cr IPO opens for subscription
19 Nov 2024
The Rs10,000-crore initial public offer (IPO) of NTPC Green Energy, the renewables arm of NTPC Ltd, opened for subscription on Tuesday (19 November 2024) and will remain open till 22 November.
The IPO is an issue of fresh equity and NTPC proposes to use the proceeds for capitalisation and debt repayment as well as other corporate financial needs of NTPC Renewable Energy.
The company has earmarked 10 per cent of the issue, ie, Rs1,000 crore, for subscription by shareholders of NTPC, who can also apply in the general category.
To be eligible to apply under the shareholder’s quota, investors should be holders of NTPC shares as of the date of filing of the red herring prospectus.
Such shareholders can also bid for the non-institutional retail portion of the issue under the general category, which gives NTPC shareholders an advantage over the general public in acquiring the NTPC Green Energy stock.
NTPC decided to apply a cut-off date for the shareholder quota following a rush to buy NTPC shares after the announcement of the NTPC Green Energy IPO.
However, there is no guarantee that qualifying investors will all be getting allotment of shares.
In case of an oversubscription, including the shareholder portion, then the share allotment will be based on proportionate basis.
As of 5:15 pm on Day 1 (Tuesday), the IPO has been subscribed 33 per cent. The shareholders quota was subscribed 57 per cent, while the retail portion was subscribed 133 per cent. There were no subscription applications from qualified institutional investors while non-institutional portion was subscribed 13 per cent.
NTPC Green Energy IPO price band has been fixed at Rs102 to Rs108 per share and retail application should be for a minimum of 138 shares.
The company is expected to finalise share allotment by 25 November, while listing is tentatively fixed for 27 November.
Kfin Technologies is the registrar to the issue, while IDBI Capital Market Services, HDFC Bank, IIFL Securities and Nuvama Wealth Management are the book-running lead managers.