NTPC Green Energy IPO booked 33% on Day 1, retail category fully subscribed; check details

NTPC Green Energy IPO saw a tepid demand on the first day of subscription on Tuesday, November 19, as the public offer was booked only 33% across investor categories. However, the retail investors showed highest demand by fully subscribing their quota.

The ₹10,000-crore mainboard issue of the subsidiary of the state-owned NTPC Limited is open for subscription from November 19 to November 22.

The investors across categories applied for over 19.48 crore shares compared to 59.31 crore shares offered for subscription.

The mainboard issue was booked 1.33 times in the retail category with bids for over 11.5 crore shares compared to 8.62 crore shares reserved for the category. The Non-Institutional Investors’ (NIIs) category was subscribed only 15% with applications for 2 crore shares against 12.94 crore shares reserved for the segment. The Qualified Institutional Buyers (QIBs) applied for 87,906 shares against more than 25.88 crore shares set aside for them.

The employees’ quota of NTPC Green Energy IPO was booked 17% on the first day. The employees of the company applied for over 35.49 lakh shares compared to 2.06 crore shares reserved for them. On the other hand, the shareholders quota of the IPO was subscribed 57% as investors applied for 5.59 crore shares against 9.8 crore shares set aside for the category.

NTPC Green Energy IPO: Offer size and price band

Retail investors interested in applying for NTPC Green Energy IPO can place bids for a minimum single lot size of 138 shares, which aggregates to an investment of ₹14,904.

Small Non-Institutional Investors (sNIIs) can place bids for a minimum of 14 lots or 1,932 shares, which amounts to an investment of ₹2,08,656. Big Non- Institutional Investors (bNIIs) can bid for 68 lots or 9,384 shares, aggregating to a minimum investment of ₹10,13,472.

NTPC Green Energy IPO dates

NTPC Green Energy IPO subscription will close on Friday, November 22. NTPC Green Energy IPO share allotment status is likely to be finalised on Monday, November 25.

After the finalisation of the share allotment status, the company will initiate refunds for unsuccessful bidders on Tuesday, November 26. The successful bidders will also receive shares of NTPC Green Energy in their demat accounts the same day.

The tentative IPO listing date has been fixed as November 27. NTPC Green Energy shares will be listed on the NSE and BSE.

NTPC Green Energy IPO registrar

The book running lead managers for NTPC Green Energy IPO include: IDBI Capital Market Services Limited, HDFC Bank Limited, IIFL Securities Ltd and Nuvama Wealth Management Limited. Kfin Technologies Limited is the registrar for the NTPC Green Energy IPO.

NTPC Green Energy promoters

NTPC Green Energy’s promoter is its parent firm NTPC Limited, the state-owned power sector giant. Before the public issue the promoters held 100% stake in the company, after the issue the shareholding of the promoters will reduce to 89.01%.

NTPC Green Energy key financials

NTPC Green Energy reported a revenue of ₹1,132.74 crore in Q2FY25, while its net profit stood at ₹175.3 crore. NTPC Green Energy’s networth stood at ₹8,189.18 crore at the end of the September quarter of FY25.

Between FY22 and FY24, it saw a CAGR rise of over 29% in its revenue from operations and 53.7% in its profit. Moreover, renewable energy is a growing industry as India aims to achieve about 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030, which could benefit the company.

NTPC Green Energy IPO objective

The company plans to use the money raised via the public issue for repayment of borrowings availed by its subsidiary NTPC Renewable Energy Limited (NREL). The renewable energy company will also use the proceeds for general corporate purposes.

About NTPC Green Energy Limited

NTPC Green Energy Limited was incorporated in April 2022. The company is a wholly owned subsidiary of power sector company NTPC Limited. NTPC Green Energy focuses on undertaking renewable energy projects through organic and inorganic routes. The company’s workforce consisted of 234 employees and 45 contract labourers as of June 30, 2024.