State-owned NTPC Green Energy Limited, a renewable energy subsidiary of NTPC Limited, has launched its initial public offering (IPO) today, November 19.
The IPO, open for public bidding until November 22, aims to raise approximately ₹10,000 crore. With a focus on expanding renewable energy capacity, this public offer has garnered significant attention from investors.
IPO Details
| Details | Information |
|---|---|
| Price Band | ₹102-₹108 per share |
| Funds to Be Raised | ₹10,000 crore |
| Lot Size | 138 shares per lot |
| Bidding Dates | November 19 – November 22 |
| Listing Date | November 27 |
Allocation Details:
- Qualified Institutional Buyers (QIBs): 75% of the issue
- Non-Institutional Investors (NIIs): 15% of the issue
- Retail Investors: 10% of the issue
- Employee Reservation: 20 crore shares with a ₹5 discount per share
Grey Market Premium (GMP) Status
The GMP for NTPC Green Energy IPO has dropped significantly from ₹9 per share on November 12 to ₹1 per share as of November 17. Based on the upper price band of ₹108, shares are expected to list at ₹109, reflecting a modest 0.93% premium.
Objectives of the IPO
NTPC Green Energy plans to utilize the proceeds for:
- Investments in its subsidiary, NTPC Renewable Energy Limited (NREL).
- Repayment or prepayment of certain outstanding borrowings.
- General corporate purposes.
Why Invest in NTPC Green Energy?
- Focus on Renewable Energy: The company specializes in completing renewable energy projects using organic and inorganic methods.
- Government Backing: As a subsidiary of NTPC Limited, NTPC Green Energy benefits from state support and access to resources.
- Growth Potential: With rising demand for clean energy, NTPC Green Energy is well-positioned to capitalize on the renewable energy boom.
Conclusion
NTPC Green Energy’s IPO offers investors a chance to participate in India’s renewable energy transition. While the muted GMP indicates cautious optimism, the company’s strong backing and focus on clean energy make it a promising long-term investment. Stay updated on subscription trends and market sentiment for this significant public issue.
Disclaimer: This article is for informational purposes only. Readers should consult financial advisors or conduct their own research before making investment decisions.
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