NTPC Green IPO Sees Strong Start, Retail Portion Oversubscribed on Day 1

The Initial Public Offering (IPO) of NTPC Green Energy Ltd (NGEL) witnessed strong participation on its first day, with around one-third of the shares on offer being subscribed. The retail investor segment saw significant enthusiasm, as their portion was oversubscribed by 1.5 times, according to the latest data.

IPO Price Range and Offering Details

NTPC Green has set the IPO issue price at ₹102-108 per share, with a minimum lot size of 138 shares. The company is offering fresh equity shares worth ₹10,000 crore, amounting to approximately 92.59 crore shares. Of the total, 75% of the offering is reserved for Qualified Institutional Buyers (QIBs), 15% for High Net-Worth Individuals (HNIs), and 10% for retail investors.

From the ₹10,000 crore raised, ₹7,500 crore will be allocated to its wholly-owned subsidiary, NTPC Renewable Energy Ltd (NREL), for repayment or prepayment of loans, capital expenditure, and general corporate purposes.

Market Leadership in Renewable Energy

Promoted by NTPC, NTPC Green Energy is a significant player in India’s renewable energy sector (excluding hydropower), boasting a robust portfolio. As of June 30, 2024, its portfolio included 14,696 MW of capacity, comprising 2,925 MW of operational projects and 11,771 MW of contracted and awarded projects. An additional 10,975 MW is under development, bringing the total portfolio to 25,671 MW.

The company plans to commission 14 GW of pumped hydro-capacity over the next 6-9 years, compared to the current installed capacity of 3.3 GW. It has 5.9 GW under construction and another 10.8 GW in the pipeline. NTPC Green also aims to achieve 60 GW of renewable capacity by 2032, underscoring its commitment to sustainable energy growth.

NTPC Green received approval from the Securities and Exchange Board of India (SEBI) in late October to proceed with the IPO. The company had filed its draft red herring prospectus (DRHP) with SEBI on September 18, 2024.

With India’s stock markets booming, companies are capitalizing on investor interest by going public. NTPC Green’s IPO reflects the trend of companies leveraging public offerings to fund expansion, with many achieving substantial success in the process.