NTPC Green Energy IPO Fully Subscribed On Last Day: Key Takeaways

The initial public offering (IPO) of NTPC Green Energy Limited was fully subscribed on the third and final day of bidding, November 22, driven by strong demand from retail investors.

The mainboard issue of state-owned NTPC Limited’s subsidiary was booked 1.27 times by 1 PM, as per the NSE data.

Overall, NTPC Green Energy IPO received bids for 75,35,83,362 shares, compared to the 59,31,67,575 shares available for subscription.

The retail portion of the IPO was booked 2.85 times, while the Qualified Institutional Buyers’ (QIBs) category was booked 1.21 times. The Non-Institutional Investors (NIIs) subscribed their quota only 47 percent.

The QIBs placed bids for 31,34,78,316 shares, surpassing the 25,88,23,531 shares set aside for them. The NIIs applied for 6,06,62,178 shares, compared to 12,94,11,764 shares available for bidding. Retail investors placed bids for 24,54,19,476 shares compared to 8,62,74,509 shares reserved for the segment.

NTPC Green Energy’s shares will be listed on both the BSE and the National Stock Exchange (NSE), with the tentative listing date fixed as November 27.

NTPC Green Energy IPO: Details

The NTPC Green Energy IPO is a book-built issue valued at Rs 10,000 crore. This issue consists entirely of a fresh issue of 92.59 crore shares, with the price band set between Rs 102 and Rs 108 per share. Retail investors can apply for a minimum of 138 shares, which requires an investment of Rs 14,904. For small Non-Institutional Investors (sNII), the minimum investment is Rs 2,08,656, for 14 lots, or 1,932 shares. For big Non-Institutional Investors (bNII), the minimum investment required is Rs 10,13,472 for at least 68 lots, or 9,384 shares.

IDBI Capital Market Services, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the appointed book-running lead managers for the NTPC Green Energy IPO, with KFin Technologies serving as the issue’s registrar.

NTPC Green Energy IPO: Key dates

The NTPC Green Energy IPO’s subscription window opened on November 19. The basis of allotment for the IPO will be determined on Monday, November 25. Following that, refunds for unsuccessful applicants will be initiated on November 26, while shares will be credited to successful bidders’ demat accounts the same day. The listing of NTPC Green Energy on the stock exchanges is set to take place on November 27.

NTPC Green Energy IPO: Objectives

NTPC Green Energy plans to utilise the proceeds from the IPO to invest in its wholly owned subsidiary, NTPC Renewable Energy Limited (NREL), for the repayment or prepayment, in part or in full, of certain outstanding borrowings incurred by NREL. The company will also use a part of the proceeds to meet general corporate expenses.

NTPC Green Energy Limited, established in April 2022, is a fully-owned subsidiary of public sector power major NTPC Limited. The company specialises in renewable energy projects through both organic and inorganic means. As of August 31, 2024, the company’s operational capacity includes 3,071 MW from solar and 100 MW from wind energy across six states.