Market News
2 min read | Updated on September 19, 2024, 15:59 IST
SUMMARY
NTPC Green Energy informed that up to 10% of the issue would be reserved for existing NTPC shareholders. This means that investors who held even a single NTPC share as of the date of filing the red herring prospectus (RHP) will have the opportunity to participate in this quota.
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NTPC Green Energy Ltd (NGEL), an umbrella company for NTPC Ltd's green business initiatives, has filed its draft papers with the capital market regulator Securities and Exchange Board of India (SEBI) to raise ₹10,000 crore through an initial public offering (IPO).
While other important details like the opening date of the issue and price band are yet to be announced, NTPC Green Energy has informed that it would keep a shareholders’ quota in the issue to give certain advantage to existing investors of NTPC.
Further, eligible NTPC shareholders bidding in the shareholders’ quota would also be able to apply for shares in the retail portion or non-institutional investors’ portion, and such bids will not be treated as multiple bids.
The stock has gained 5% in the past one month and 36% year-to-date in the calendar year 2024.
Meanwhile, NGEL’s DRHP revealed that its IPO would be entirely a fresh issuance of equity shares, with no offer-for-sale (OFS) component.
The proceeds from the fresh issuance of the issue, to the tune of ₹7,500 crore, will be used to repay or prepay a part or all of NTPC Renewable Energy Ltd’s (NREL) outstanding loans. NREL is a subsidiary of NGEL. A portion of funds will also be used for general corporate purposes.
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