The Rs 10,000-crore initial share sale of NTPC Green Energy, the wholly-owned subsidiary of the country's largest power generation company NTPC, will open for subscription on November 19, with a price band at Rs 102-108 per share.
The public issue, which consists of an entirely fresh issue with no offer-for-sale component, will close on November 22, while the institutional investors can participate in the anchor book of up to Rs 3,960 crore on November 18.
The company has reserved Rs 200 crore worth of shares for its employees. The eligible employees will get these shares at a discount of Rs 5 per share to the final issue price. Further, Rs 1,000 crore worth of shares are reserved for shareholders.
Up to 75 percent of the net issue size (excluding employees and shareholders' portion) has been reserved for qualified institutional buyers, 15 percent for non-institutional investors, and the remainder 10 percent for retail investors.
NTPC Green Energy which develops a portfolio of utility-scale renewable power projects intends to utilise Rs 7,500 crore out of the net fresh issue proceeds for repaying the debt of its subsidiary, NTPC Renewable Energy (NREL), and the remaining funds for general corporate purposes.
The total outstanding borrowings (fund-based) of NREL were Rs 16,235 crore on a consolidated basis as of July 2024.
Investors can bid for a minimum of 138 equity shares and in multiples of 138 shares thereafter. Retail investors can invest a minimum of Rs 14,904 for one lot of 138 shares and their maximum investment will be Rs 1,93,752 for 13 lots of 1,794 shares, as they are allowed to invest up to Rs 2 lakh in the IPO.
NTPC Green Energy is the largest renewable energy PSU (excluding hydro) in terms of operating capacity and power generation, with an operational capacity of 3,071 MW of solar projects and 100 MW of wind projects across six states.
As of June 2024, its portfolio consisted of 14,696 MWs including 2,925 MWs of operating projects and 11,771 MWs of contracted and awarded projects. Further, the company also has a capacity under the pipeline consisting of 10,975 MW.
The renewable energy company shares will be available for trading on the BSE and NSE, effective November 27.
IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are acting as the merchant bankers on the issue.
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