The much-anticipated Initial Public Offering (IPO) of NTPC Green Energy, a wholly-owned subsidiary of NTPC, India's largest power producer, is set to generate significant interest among investors. The IPO, valued at approximately Rs 10,000 crore, offers a unique opportunity for NTPC shareholders under the reserved shareholder quota.
The IPO will be open for public subscription from November 19 to November 22, 2024. Alongside categories for retail investors, high-net-worth individuals (HNIs), and employees, the offering includes a special reserved quota for existing NTPC shareholders. This category enhances allocation prospects, giving NTPC shareholders a unique chance to participate.
NTPC Green Energy has earmarked 10 percent of the IPO for existing NTPC shareholders, as outlined in its Red Herring Prospectus (RHP). Eligible shareholders must have held NTPC shares in their demat accounts as of November 13, 2024, the date of the RHP filing.
Eligible applicants include individuals and Hindu Undivided Families (HUFs) who are public equity shareholders of NTPC as of the RHP date, with certain restrictions applicable under relevant laws.
Equity shares with a face value of Rs 10 each will be allocated to eligible shareholders on a proportionate basis, with the reserved portion not exceeding 10 percent of the total issue size. The IPO is priced between Rs 102 and Rs 108 per share, and investors must apply for a minimum of 138 shares, with further applications in multiples of 138.
The Grey Market Premium (GMP) for NTPC Green Energy is currently trading at around Rs 2.5 - 3, indicating a modest premium of approximately 3 percent. This suggests positive investor sentiment for the IPO, even in the unofficial market.
NTPC Green Energy aims to invest up to Rs 1 lakh crore in solar and wind energy projects by FY27. This ambitious target underscores the company’s commitment to expanding India's renewable energy capacity. Since its inception, the parent company, NTPC, has already invested Rs 7,500 crore in NTPC Green Energy, strengthening its foundation for growth.
The NTPC Green Energy IPO is one of the largest offerings in recent times, second only to Swiggy’s Rs 11,320-crore share sale. Its significant size and valuation make it a noteworthy entry in the IPO market, reflecting the growing focus on sustainable energy solutions.
NTPC Green Energy is targeting a valuation of Rs 1 lakh crore, aligning with its massive investment plans. The company’s long-term goal to develop renewable energy assets positions it as a key player in India's transition to clean energy.
While the NTPC Green Energy IPO presents a compelling investment opportunity, experts advise conducting thorough research or consulting certified financial advisors before making decisions. Market conditions and individual financial goals should guide investment choices.