Mumbai, November 8: The initial public offering (IPO) of NTPC Green Energy is likely to open in the third week of November. Sources close to the development said that the NTPC Green Energy IPO is expected to be launched for bidding on Monday, November 18. However, official information regarding the same is awaited. It must be noted that NTPC Green Energy had received the capital markets regulator Securities and Exchange Board of India (SEBI) nod to raise INR 10,000 crore through an initial public offering (IPO) in October.

NTPC Green Energy, a wholly owned subsidiary of NTPC, is all set to launch its IPO soon. Ahead of NTPC Green Energy's IPO launch, we'll discuss the data, price, and other details regarding NTPC here. Before that, it's important to know what an IPO is. An IPO, also known as an Initial public offering (IPO), is a process where companies sell their shares to the public in order to raise equity capital from investors. NTPC Green Energy Gets SEBI Nod for Rs 10,000 Crore IPO.

When Did NTPC Green Energy File IPO Papers?

NTPC filed its IPO papers with the SEBI on September 18. While the proposed IPO is entirely a fresh issue of shares, it also includes a reservation for a subscription by eligible employees. The company is also offering a discount to eligible employees who will be bidding in the employee reservation portion. As per an ANI report, the proceeds from the fresh issue worth INR 7,500 crore will be used for investment in the company's wholly-owned subsidiary, NTPC Renewable Energy (NREL).

It is reported that the proceeds will be used for repayment or prepayment and other general corporate purposes. While the NTPC Green Energy IPO is a fresh issue of shares, the company is expected to raise INR 10,000 crore via IPO through an entirely fresh share sale. It is also learned that the PSU player is most likely to announce its price band in the coming week.

What Is NTPC? What Will Be the Price Band?

Notably, this will be the third IPO raising over INR 10,000 crore in 2024. Before NTPC Green Energy, IPOs such as Hyundai Motor India Ltd (INR 27,856 crore) and Swiggy Ltd (INR 11,327 crore) hit Dalal Street in the recent past. NTPC Green Energy, which was incorporated in April 2022, is a renewable energy public sector company that focuses on undertaking projects through organic and inorganic routes. Hyundai Motor to Invest Around INR 32,000 Crore in India Till 2032, Eyes IPO Launch on October 22.

Who Can Buy NTPC Green Energy Shares?

According to reports, NTPC Green Energy's IPO is expected to have reservations for shareholders of NTPC Ltd, the parent company. However, the eligibility for the shareholder quota will be determined as of the date of filing the red herring prospectus (RHP). While there will be an allocation for NTPC shareholders and eligible employees, it is learned that 75 per cent of the net offer will be eligible for qualified institutional investors.

Whereas non-institutional investors (NIIs) and retail investors are likely to have 15 per cent and 10 per cent of shares reserved in the net offer. Notably, NTPC Green's portfolio consisted of 14,696 MWs, including 2,925 MWs of operating projects and additionally 11,771 MWs of contracted and awarded projects till June 30. Reports also said that the price band of NTPC Green is likely to be in the range of INR 100 to INR 120 per share; however, the price will depend on market conditions at the time of the listing.

(The above story first appeared on LatestLY on Nov 08, 2024 01:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).