NTPC Green Energy IPO: Key Dates, Price Band, Share Price and GMP

NTPC Green Energy IPO: Key Dates, Price Band, Share Price and GMP

State-owned NTPC Green Energy Limited is set to launch its Initial Public Offering (IPO) for public bidding from Tuesday, November 19, to Friday, November 22, 2024. The company has scheduled an anchor investor round on Monday, November 18, 2024.

IPO Highlights:

1. Price Band: ₹102 to ₹108 per share.
2. Face Value: ₹10 per share.
3. Lot Size: 138 shares per lot.
4. Total Issue Size: ₹10,000 crore.
5. Employee Discount: ₹5 per share.
6. Listing: Expected on both BSE and NSE on November 27, 2024.

Timeline:

• • Opening Date: November 19, 2024
  • Closing Date: November 22, 2024
  • Basis of Allotment: November 25, 2024
  • Refunds Initiation: November 26, 2024
  • Shares Credited to Demat: November 26, 2024
  • Listing Date: November 27, 2024.

Investment Requirements:

• Retail Investors: Minimum investment is ₹14,904 (1 lot of 138 shares).
• Small HNIs: Minimum investment is ₹208,656 (14 lots).
• Big HNIs: Minimum investment is ₹1,013,472 (68 lots).

IPO Details:

• Total Issue Size: ₹10,000 crore via a book-built issue of 92.59 crore equity shares.
• Price Band: ₹102 to ₹108 per share (face value ₹10 per share).
• Lot Size: 138 shares per lot.
• Anchor Allocation: 36.67 crore shares, including 14.53 crore shares allocated to domestic mutual funds across 72 schemes.
• Reserved Shares:
  • ₹200 crore for employees (₹5 discount per share).
  • ₹1,000 crore (10% of the issue size) for NTPC shareholders.

Utilization of Proceeds:

• ₹7,500 crore will be used to repay the debt of its subsidiary, NTPC Renewable Energy. The company aims to reduce its outstanding borrowings from ₹17,057.5 crore to ₹9,557.5 crore post-repayment.

Business Overview

NTPC Green Energy operates:

• Solar Projects: 3,220 MW.
• Wind Projects: 100 MW.
• Contracted and Awarded Projects: 13,576 MW.
• Pipeline Capacity: 9,175 MW.

The company develops solar and wind power assets across six states, contributing significantly to NTPC’s renewable energy expansion plans.

IPO Allocation:

• Qualified Institutional Buyers (QIB): At least 75%.
• Non-Institutional Investors (NII): Up to 15%.
• Retail Investors: Up to 10%.

Key Players:

• Book Runners: HDFC Bank, IDBI Capital, Nuvama Wealth Management, and IIFL Capital.
• Registrar: Kfin Technologies Limited.

Grey Market Premium (GMP) Update:

As of November 17, 2024, the GMP for NTPC Green Energy’s IPO is Re 1 per share, reflecting a sharp decline from ₹9 per share on November 12. The GMP indicates subdued investor sentiment.

This IPO, being a fresh issue with no offer-for-sale component, offers an opportunity for retail, institutional, and employee investors to invest in India’s growing renewable energy sector. However, the declining GMP suggests cautious optimism among investors.

About NTPC Green Energy IPO

The NTPC Green Energy Limited (NGEL) IPO is a significant offering in India’s renewable energy sector. This IPO has generated substantial interest due to its strong backing and focus on renewable energy. However, investors should assess market conditions and the company’s fundamentals before investing. For more comprehensive details, refer to the company’s red herring prospectus (RHP).

About NTPC Green Energy

NTPC Green Energy Limited (NGEL) is a wholly-owned subsidiary of NTPC Limited, India’s largest energy conglomerate. It was established to focus on renewable energy and support NTPC’s vision of achieving 60 GW of renewable energy capacity by 2032. Here’s a detailed overview:

Core Business and Projects

Renewable Energy Focus:

• The company primarily develops solar and wind energy projects.
• It also explores other clean energy technologies such as green hydrogen.

Current Portfolio:

• • Operational capacity of 3,171 MW (as of August 2024):
    • Solar Projects: 3,071 MW
    • Wind Projects: 100 MW

• • Pipeline projects include an additional 11,771 MW under development, awarded, or contracted.

Expansion Plans:

• NGEL has ambitious plans to invest in India’s renewable energy transition, aligning with global climate goals.
• Focus areas include floating solar power projects and hybrid energy systems (combining wind and solar).

Strategic Importance

• • NGEL plays a key role in helping NTPC meet its clean energy targets.
  • It supports India’s commitment to achieving 500 GW of renewable capacity by 2030.

Government Backing and Financial Strength

• Ownership: Fully backed by NTPC Limited, a public sector enterprise under the Ministry of Power.
• Strong Financial Support: NTPC’s existing expertise and financial muscle ensure NGEL’s growth potential.

Future Prospects

• NGEL is positioned as a significant player in India’s energy transition, with projects catering to domestic and international clean energy demands.
• Its innovative solutions in renewable energy storage and green hydrogen production are expected to enhance its market share in the coming years.

What is mean by Gray Market Price

In the context of shares and Initial Public Offerings (IPOs), the gray market price (GMP) refers to the unofficial price at which shares are traded before they are officially listed on a stock exchange.

Key Points about GMP in Shares:

What is the Gray Market?

It is an informal market where shares are bought and sold outside the official trading systems. Transactions occur between individuals or brokers without regulatory oversight.

1. GMP Meaning:
   • The GMP is the premium (or discount) over the issue price of the IPO shares in the gray market.
   • Example: If an IPO’s issue price is ₹100, and its GMP is ₹50, the shares are trading unofficially at ₹150 (₹100 + ₹50).
2. Purpose of GMP:
   • It indicates investor sentiment about the IPO.
   • A high GMP suggests strong demand and potential listing gains, while a low or negative GMP indicates weaker demand.
3. How GMP Works:
   • Investors and brokers estimate the future value of the stock and trade shares unofficially.
   • Deals are settled in cash, and transactions are not recognized by the exchange or regulators.
4. Risks and Limitations:
   • • GMP is speculative and not guaranteed to reflect actual listing day performance.
     • It is influenced by market trends, subscription levels, and broader sentiment.
     • Because it’s unofficial, there are no legal protections for investors.

   
   
   
   

Example:

• Issue Price: ₹500
• GMP: ₹100
• Expected Listing Price: ₹600 (₹500 + ₹100)

While the GMP is a useful indicator of market enthusiasm for an IPO, it should not be the sole basis for investment decisions.

All values, calculations and our content are based on our own assumptions and thoughts. Please consult with your financial advisor before making any investment decisions based on this article. Vijay Broadcast is not responsible for any Profits / Losses. Thank you for reading, and we look forward to sharing another interesting article with you soon!