NTPC Ltd (NSE: NTPC) Green Energy IPO: It’s an opportunity for those betting on an initial public offering, IPO.
Another eagerly anticipated IPO will be open to investors this week. This IPO is owned by NTPC Green Energy Limited, the green energy arm of the public sector NTPC Limited.
The IPO is open for public subscription starting on November 19 and will close by the end of November 22.
The company has set the price per equity share of the IPO, which ranges from Rs 102 and Rs 108. Investors may bid on the issue in lots of 138 shares as well as multiples.
This IPO of NTPC Green Energy Limited is worth Rs 10,000 crore. This share is offered for sale for Rs 9 on the grey market currently.
What Is The Detail?
The NTPC Green Energy’s Rs 10,000 crore IPO is an offering of equity shares, and there is no offer for sale (OFS) element for it.
It is the third largest annual public offer after Hyundai Motor India’s IPO that raised Rs 27,870 crore as well as Swiggy’s IPO of Rs 11,300 crore.
The majority of 75 percent of the total IPO will be reserved for institutional investors and 15 percent of it will go to investors who are not institutional.
10 percent part of the IPO can be reserved for retail investors. A share of up to Rs 200 crore is reserved for qualified employees.
Employees can benefit from the discount of 5 rupees per share during bidding. Share up to Rs 1000 crore will be reserved for current shareholders of NTPC as part of the shareholder contingent.
Company Business
NTPC Green Energy is an affiliate that is part of Maharatna PSU NTPC and is involved in the development of an array of utility-scale renewable energy projects.
Concentration risk for takers as well as supplier concentration risk and risk of project execution are a few of the risks highlighted in the prospectus of NTPC Green Energy its red prospectus.
Quick Fact
| Company name | NTPC Green Energy |
|---|---|
| IPO launch date | November 19 |
| IPO closing date | November 22 |
| Price per share | ₹102 – ₹108 |
| Lot size | 138 shares |
| IPO total worth | ₹10,000 crore |
| Grey market price | ₹9 |
| Largest IPO rank | 3rd largest of the year |
| Institutional reserve | 75% |
| Non-institutional reserve | 15% |
| Retail investor reserve | 10% |
| Employee reservation | Up to ₹200 crore |
| Employee discount per share | ₹5 |
| NTPC shareholder reservation | Up to ₹1000 crore |
| Parent company | NTPC |
| Focus area | Renewable energy |
| Highlighted risks | Taker concentration, supplier concentration, project execution |
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