NTPC Green Energy IPO: Will shareholder quota improve allotment chances?

NTPC Green Energy IPO: Much-awaited initial public offering (IPO) of NTPC Green Energy is open for subscription. The renewable energy arm of NTPC Limited plans to raise ₹10,000 crore through this IPO. The public issue will remain open till November 22.

Additionally, eligible NTPC shareholders can also place bids on public issue through the retail or non-institutional portion or the employees’ category if they are eligible. Hence, this gives flexibility to shareholder to apply in both the shareholder and general categories.

Does shareholder quota increase IPO allotment chances?

After the NTPC Green Energy IPO announcement investors were seen flocking to buy NTPC Ltd shares to qualify for the shareholder quota. Experts believe applying under the shareholder quota increase the odds of getting the allotment. However, it does not guarantee share allotment.

Allotment chances are boosted as NTPC shareholder has option to apply under multiple categories (shareholder, retail or non-institutional). But final IPO allotment will largely depend on number of applications received.

If the overall IPO is oversubscribed multiple times, including shareholder category then in such scenario the share allotment will be based on proportionate basis as mentioned in NTPC Green Energy’s RHP.

As of 11:45 am on day 1, the IPO is subscribed 15%. The shareholders quota was booked 26%, while the retail portion was subscribed 64%. The non-institutional investors (NIIs) part attracted a 5% subscription.

Meanwhile, NTPC Ltd shares are trading ₹369 per share, up 0.9% on the NSE as of 11:45 am, with a day high of ₹378.50 per share and day low of ₹367.3 apiece.

About NTPC Green Energy IPO

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.