NTPC Green Energy’s Mega IPO Opens for Subscription: Key Details, Benefits, and Expectations

The much-anticipated mega initial public offering (IPO) of NTPC Green Energy Ltd, the renewable energy arm of NTPC, opened for subscription on November 19 and will remain open until November 22.

This ₹10,000-crore IPO marks a significant milestone as it is the largest public offering by a PSU in the renewable energy sector. With India aggressively pursuing its clean energy objectives, this IPO offers investors a rare chance to become part of the country’s green energy transformation.

Key Details of the NTPC Green Energy IPO

NTPC Green Energy IPO Price Band and Lot Size

The IPO price band has been set between ₹102 and ₹108 per share. Investors can bid in multiples of 138 shares, with a minimum investment of ₹14,904. Retail investors can invest up to ₹1,93,752, which translates to 13 lots.

NTPC Green Energy IPO Structure

The IPO consists entirely of a fresh issue of nearly 96 crore equity shares, with no offer-for-sale component. Here’s how the public issue is divided:

• Qualified Institutional Buyers (QIBs): 44%

• Non-Institutional Investors (NIIs): 22%

• Retail Investors: 14%

• NTPC Shareholders: ₹1,000 crore worth of shares reserved.

• Employees: ₹200 crore worth of shares reserved at a ₹5 discount per share.

Anchor Book Allocation

On November 18, NTPC Green Energy raised ₹3,960 crore through its anchor book by allocating 36.67 crore equity shares at ₹108 per share to prominent global and domestic investors.

• Key global investors: Goldman Sachs, Morgan Stanley, Government of Singapore, Abu Dhabi Investment Authority.

• Domestic investors: LIC of India, ICICI Prudential Mutual Fund, Nippon Life India, Kotak AMC.
  Of these, domestic mutual funds subscribed to 14.53 crore shares via 72 schemes.

Purpose of the NTPC Green Energy IPO

Proceeds from the IPO will primarily be used to reduce the debt of its subsidiary, NTPC Renewable Energy, by ₹7,500 crore. This will bring down the outstanding borrowings from ₹17,057.5 crore (as of September 2024) to ₹9,557.5 crore. The remaining funds will be allocated for general corporate purposes, ensuring further financial stability and operational growth.

NTPC Green Energy: Business and Operations

Expanding Renewable Portfolio

NTPC Green Energy stands as the largest renewable energy public sector enterprise in India (excluding hydro).

• Operational capacity: 3,220 MW (solar) and 100 MW (wind).

• Pipeline projects: 13,576 MW contracted and awarded.

• Under development: 9,175 MW.

Its cumulative renewable capacity stands at an impressive 26,071 MW, with plans to scale up to 60 GW by FY32. Key upcoming projects include the 2.45 GW solar power facility in Khavda, Gujarat and a green hydrogen hub at Pudimadaka, Andhra Pradesh.

Focus on Green Hydrogen and Battery Storage

NTPC Green Energy is also pioneering advancements in green hydrogen and round-the-clock renewable energy solutions, including the development of one of the world’s largest 24/7 renewable projects (1.3 GW).

NTPC Green Energy Shares Listing

The shares are slated to list on BSE and NSE on November 27. Despite a marginal decline in the grey market premium (GMP) to ₹1-2, market sentiment indicates modest expectations for listing gains.

Conclusion

The NTPC Green Energy IPO presents a unique opportunity for investors to participate in India's ambitious clean energy transition. As the largest renewable energy public sector enterprise in India, NTPC Green Energy’s extensive portfolio and aggressive growth plans highlight its strategic importance in meeting the country’s renewable energy goals.

While the grey market premium suggests modest listing gains, the IPO’s long-term prospects, supported by strong institutional backing and brokerage recommendations, make it an attractive investment, particularly for those aligned with sustainable growth. As India accelerates its green energy journey, NTPC Green Energy is poised to play a pivotal role in shaping the future of renewable energy.