NTPC Green Energy IPO: Here’s how to apply under the shareholders’ quota and increase chances of allotment

The much-awaited initial public offering of the renewable energy arm of NTPC Limited is set to open for subscription next week, on November 19. NTPC Green Energy Limited, a wholly-owned subsidiary of NTPC, aims to raise ₹10,000 crore via its initial public offering.

NTPC Green Energy Limited has reserved shares worth ₹1,000 crore for NTPC shareholders. However, under the shareholders' quota, there will be no discount for the IPO applicants.

Let's take a look at who can bid under the shareholders’ category in the NTPC Green Energy IPO subscription.

NTPC Green Energy IPO: Last date for shareholder quota eligibility

Applicants who hold NTPC’s shares on the filing date of the Red Herring Prospectus (RHP) are eligible to apply under the shareholders’ quota for the NTPC Green Energy IPO. Since the company filed its RHP on November 13, 2024, all investors who held even a single share of NTPC in their demat accounts are eligible to apply under the shareholders' quota of the NTPC Green Energy IPO.

The company has set aside shares worth ₹1,000 crore for existing NTPC shareholders under the shareholders’ category.

Additionally, eligible shareholders can also place bids on public issues through the retail or non-institutional portion or the employees’ category if they are eligible.

The company has reserved 75% of the net issue for Qualified Institutional Buyers, 10% for retail investors, and 15% for Non-Institutional Investors.

Since eligible shareholders can file two applications under the shareholder quota and under the retail/NII quota, the shareholder quota can boost the chances of securing allotment.

NTPC Green Energy IPO details

The NTPC Green Energy IPO is worth ₹10,000 crore and consists of an entirely fresh issue of 92.59 crore shares. The IPO subscription window will remain open from November 19 to November 22.

NTPC Green Energy IPO price band has been fixed at ₹102 to ₹108 per share. Retail investors can apply for a minimum of 138 shares, aggregating to an investment of ₹14,904 at the upper end of the price band.

NTPC Green Energy IPO share allotment status is expected to be finalised on November 25. The company’s shares will be listed on the BSE and NSE. The tentative listing date for NTPC Green Energy shares is November 27.

Kfin Technologies Limited is the issue's registrar. The book-running lead managers are IDBI Capital Market Services Limited, HDFC Bank Limited, IIFL Securities Ltd, and Nuvama Wealth Management Limited.

NTPC Green Energy IPO objective

NTPC Green Energy plans to use the money raised through the public issue to repay loans taken out by its subsidiary, NTPC Renewable Energy Limited (NREL), and for general corporate purposes.

About NTPC Green Energy

NTPC Green Energy Limited was incorporated in April 2022. NTPC Green is a state owned company focused on undertaking renewable energy projects through organic and inorganic routes. The company had an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects across six states as of August 31, 2024.

As of 30 June 2024, the company’s portfolio consisted of 14,696 MWs, including 2,925 MWs of operating projects and 11,771 MWs of contracted and awarded projects. In addition, its capacity under pipeline, where a definitive agreement has yet to be signed, is 10,975 MWs. Hence, the overall capacity could stand at 25,671 MWs upon execution of ongoing projects.

Between FY22 and FY24, the company saw a CAGR rise of over 29% in its revenue from operations and 53.7% in its profit.