NTPC Green Energy IPO: All You Need To Know before investing
NTPC Green Energy Ltd. will launch its initial public offering on 19th Nov., Tuesday. The company plans to sell shares worth Rs 10,000 crore, entirely via a fresh issue of approximately 92.6 crore shares. The IPO is set to become India’s third largest IPO this year after Hyundai Motor India Ltd. and Swiggy Ltd.
The price band is fixed between Rs 102 and Rs 108 per share. At the upper price band, the company is valued at a market capitalization of Rs 91,000 crore.
Out of the total IPO size, 75% is reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% is to be allotted to retail individual investors. Retail investors can bid up to Rs 2 lakh in the offering. However, NTPC shareholders can participate in the shareholders’ reservation portion, raising their bidding limit to Rs 4 lakh.
Important Details-
- Issue opens: Nov. 19.
- Issue closes: Nov. 21.
- Total offer size: Rs 10,000 crore.
- Fresh issue size: Rs 10,000 crore.
- Offer for sale size: nil
- Face value: Rs 5 apiece.
- Fixed price band: Rs 102–108 per share.
- Lot size: 138 shares.
- Listing: NSE, BSE.
Use of Proceeds–
NGEL plans to utilize 75% or Rs 7,500 crore of the IPO proceeds towards debt repayment. The company plans to repay debt worth Rs 4,000 crore in the current fiscal and Rs 3,500 crore in the next fiscal. The balance 25% will be used for general corporate purposes.
Company Profile-
The company’s total portfolio stands at 25.67 gigawatts, with an operational portfolio of 2.93 GW. Its contracted and awarded capacity stands at 14.7 GW and projects under pipeline stand at 10.98 GW. Its total portfolio consists of 20.32 GW of solar capacity and 5.35 GW of wind capacity. As of financial year 2024, NGEL’s market share, depending on how many bids it won, stood at 7%. This has declined from 18% in fiscal 2022, according to Morgan Stanley. The company also plans to expand its portfolio and intends to install battery energy storage systems and hybrid contracts. The company is also developing a green hydrogen hub in Andhra Pradesh.