NTPC Green Energy IPO Opened Today: Company to raise ₹10,000 crore through IPO

NTPC Green Energy IPO Subscription Details

NTPC’s subsidiary company, NTPC Green Energy, will issue 92.59 crore fresh equity shares to raise funds aggregating to ₹10,000 crore. The company has reserved not less than 75% of the net issue for qualified institutional buyers. Meanwhile, the issue’s portion for retail investors will not exceed more than 10% of the net issue. The portion for non-institutional investors is capped at 15% of the net issue.

Being the parent company, NTPC holds a 100% stake in NTPC Green Energy.

Following the conclusion of the subscription period, shares of the company will be allotted on November 25, 2024. Shares of NTPC Green Energy will tentatively make their debut in the stock markets on November 27, 2024.

NTPC Green Energy IPO Price Band and Lot Size

NTPC Green Energy’s IPO has a price band of ₹102-₹108 per share. The lot size for the issue is set at 138 shares. One will have to invest a minimum amount of ₹14,904 to apply to the NTPC Green Energy IPO. The minimum lot size for small non-institutional investors and big non-institutional investors has been set at 14 lots and 68 lots, respectively.

Utilisation of IPO Proceeds

NTPC Green Energy stated that from the net proceeds of the IPO, the company intends to utilise ₹7,500 crore towards investment in its wholly-owned subsidiary, NTPC Renewable Energy Ltd (NREL). The company will use the funds for the full or part-repayment or prepayment of the borrowings availed by NREL. The company will use the balance funds for general corporate purposes.

About NTPC Green Energy

NTPC Green Energy is a wholly-owned subsidiary of the public sector undertaking (PSU), NTPC. The company was incorporated in 2022 and undertakes renewable energy projects either organically or inorganically.

The company reported 3,071 megawatts (MW) of operational capacity for solar power projects while operational capacity from wind projects came in at 100 MW as of August 31, 2024.

At the end of the first quarter of FY25, the company’s portfolio stood at 14,696 MW, of which, 2,925 MW were operating projects while 11,771 MW were contracted and awarded projects.

For the quarter ended September 30, 2024, the company’s net profit declined 15.78% year-on-year (YoY) to ₹175.3 crore. The company’s consolidated revenue from operations for the quarter rose 7.3% YoY to ₹1,082.29 crore.

In FY24, the company reported a 101.32% YoY rise in net profit to ₹344.72 crore. The company’s revenue for the year surged 1094.19% YoY to ₹2,037.65 crore.