You can invest in the IPO of NTPC Green Energy Ltd. from today, this IPO will remain open till November 21. The company wants to raise Rs 10,000 crore through the IPO. The company will issue 92.6 crore new shares. This fund is being raised entirely through a fresh issue. This IPO is the third largest IPO of this year after Hyundai and Swiggy. The company has raised Rs 3,960 crore from anchor investors.
The price band of the IPO has been fixed between Rs 102 and Rs 108 per share. The market cap of the company at the upper price band is Rs 91,000 crore.
NTPC Green IPO
75% of the total IPO has been reserved for qualified institutional buyers and 15% for non-institutional investors, the remaining 10% is for retail investors. Retail investors can bid up to Rs 2 lakh. However, NTPC shareholders can also participate in the reserved portion. Due to which they can bid up to Rs 4 lakh.
- Issue Open: Nov. 19.
- Issue closed: Nov. 21.
- Total offer size: Rs 10,000 crore
- New shares: Rs 10,000 crore
- OFS: Zero
- Face value: Rs 5
- Price band: Rs 102–108
- Lot size: 138 shares
- Listing: NSE, BSE.
Where will the company use the funds
NGEL will use 75% of the funds raised from the IPO, i.e. Rs 7,500 crore, to repay the debt. The company plans to repay Rs 4,000 crore in the current financial year and Rs 3,500 crore in the next financial year. The company’s top management told NDTV Profit Hindi that this fund is being used temporarily to repay the debt. Going forward, this fund will be used for capex.
The remaining 25% of the funds will be used for general corporate purposes.
Shareholding Pattern
NGEL is a wholly-owned subsidiary of the country’s Maharatna government company NTPC. After the IPO, NTPC’s stake in NGEL will decrease from 100% to 89.01%.
Business
NGEL is the renewable energy arm of NTPC, which was started in 2022. The company has a total portfolio of 25.67 GW, out of which the operational portfolio is 2.93 GW. The company has a contracted and allocated capacity of 14.7 GW and 10.98 GW of capacity in the pipeline.
Its total portfolio comprises 20.32 GW of solar energy and 5.35 GW of wind energy.
Market Share
By FY24, NGEL’s market share was 7% based on its winning bids. The company is also planning to expand its portfolio. According to the company, it is planning to build battery energy storage systems. The company is also developing a green hydrogen hub in Andhra Pradesh.
