NTPC Green Energy Limited’s IPO has been subscribed to a total of 0.36 times on the first day i.e. 19 November. This IPO has been subscribed 1.47 times in the retail category, 0 times in the Qualified Institutional Buyers (QIB) category, and 0.17 times in the Non-Institutional Investors (NII) category.
Due to the Maharashtra Assembly elections, the stock market is closed today (20 November), hence bidding for this issue will not be possible today. Investors will be able to bid for this public issue till 22 November. The company’s shares will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on 27 November.
Through this issue, the company wants to raise ₹ 10,000 crore. For this, NTPC Green Energy is issuing 925,925,926 fresh shares worth a total of ₹ 10,000 crore. The existing investors of the company are not selling a single share.
How much minimum and maximum money can be invested in NTPC Green Energy?
NTPC Green Energy has fixed the price band of the IPO from ₹ 102 to ₹ 108 per share. Retail investors can bid for a minimum of one lot i.e. 138 shares. If you apply for 1 lot as per the upper price band of the IPO of ₹ 108, then you will have to invest ₹ 14,904 for it.
At the same time, retail investors can apply for a maximum of 13 lots i.e. 1794 shares. For this, investors will have to invest ₹ 193,752 as per the upper price band.
10% of the issue is reserved for retail investors
The company has reserved 75% of the issue for Qualified Institutional Buyers (QIB). Apart from this, 10% is reserved for retail investors and the remaining 15% is reserved for non-institutional investors (NII).
The company develops a portfolio of renewable power projects
NTPC Green Energy develops a portfolio of utility-scale renewable power projects. The company will use Rs 7500 crore from the money raised from the IPO to repay the debt of its subsidiary NTPC Renewable Energy (NREL).
The remaining amount is planned to be used for general corporate purposes. NREL had a debt of Rs 16,235 crore on a consolidated basis till July 2024. NTPC was formerly known as National Thermal Power Corporation. It has an installed capacity of over 76 GW, making it India’s largest integrated power company.
What is an IPO?
When a company issues its shares to the general public for the first time, it is called an Initial Public Offering or IPO. The company needs money to expand its business. In such a situation, instead of taking a loan from the market, the company raises money by selling some shares to the public or by issuing new shares. For this, the company brings IPO.
