2 days ago
Promoted by NTPC Ltd., NTPC Green Energy Ltd. has raised ₹3,960 crore from anchor investors ahead of its initial public offering (IPO), which opens on Tuesday.
The company informed the exchanges that it allocated 36.66 crore equity shares at ₹108 per share on November 18 to anchor investors.
Foreign Institutions who participated in the anchor round include Capital World, Goldman Sachs, GIC, T.Rowe Price, Abu Dhabi Investment Authority, Morgan Stanley, Allianz Global, among others.
Domestic Institutions who participated in the anchor include Life Insurance Corporation of India, ICICI Prudential Mutual Fund, Nippon Life India MF, Kotak MF, Aditya Birla Sun Life MF, DSP MF, White Oak, Baroda BNP MF, Canara Robeco MF, Edelweiss MF, among others.
The issue with a face value of ₹10 per equity share consists entirely a fresh issue of approximately 92.6 crore shares, with no Offer For Sale (OFS) component.
The company has fixed the price band at ₹102-108 per share, where investors can bid for 138 shares in one lot and in multiples thereafter.
Ahead of the issue opening, the company's shares were trading with a GMP of ₹0.70 in the unlisted market. This indicates a marginal premium of 0.65% over the issue price.
NTPC Green has set aside 75% of the issue for institutional investors, 15% for non-institutional investors, and the remaining 10% for retail investors. Eligible employees can bid for shares with a ₹5 per share discount, with ₹200 crore worth of shares allocated under the employee quota.
Additionally, shares worth ₹1,000 crore will be set aside for existing NTPC shareholders under the shareholder reservation.
Proceeds from the fresh issue to the extent of ₹7,500 crore will be used for investment in its wholly owned subsidiary, NTPC Renewable Energy Ltd. (NREL) for repayment, in full or in part of certain outstanding borrowings availed by NREL; and general corporate purposes.
This IPO ranks as the third largest of 2024, following Hyundai Motor India's ₹27,870 crore issue and Swiggy's ₹11,300 crore offering.
Most analysts have assigned a 'Subscribe' rating to this IPO as the company is promoted by NTPC Ltd., which has extensive experience in executing large- scale projects, long term relationships with offtakers and suppliers and financial strength.
NTPC Green Energy is a wholly owned subsidiary of NTPC Ltd and is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity.
In FY24, Renewable Energy Sales contributed 96.17%, Consultancy, project management and supervision fee contributed 0.51% and other operating revenues recognized from Government Grants contributed 3.32% to the revenue from operations.
As of September 30, 2024, the company’s “Portfolio” consisted of 16,896 MWs including 3,320 MWs of operating projects and 13,576 MWs of contracted and awarded projects.
As of September 30, 2024, the company had 17 offtakers across 41 solar projects and 11 wind projects.
IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the book-running lead managers for the issue, while Kfin Technologies is the registrar.
