NTPC Green Energy IPO: Check key dates, price band, and latest GMP

NTPC Green Energy IPO: The IPO is positioned as one of the largest in India this year, alongside Hyundai Motor India Ltd. and Swiggy Ltd. The anchor book will open for subscription on Monday.

In Short

• NTPC Green Energy IPO seeks to raise Rs 10,000 crore
• Anchor book subscription begins Monday before public offer launch
• Grey Market Premium drops sharply ahead of IPO opening

NTPC Green Energy Ltd. is set to launch its eagerly awaited initial public offering (IPO) on Tuesday, aiming to raise Rs 10,000 crore through the issuance of approximately 92.6 crore shares.

The IPO is positioned as one of the largest in India this year, alongside Hyundai Motor India Ltd. and Swiggy Ltd. The anchor book will open for subscription on Monday.

The price band for the IPO is set at Rs 102 to Rs 108 per share, valuing the company at Rs 91,000 crore at the upper end. Of the total issue, 75% is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 10% for retail investors.

Additionally, Rs 200 crore worth of shares have been reserved for employees, who will receive a Rs 5 per share discount on the final issue price.

Another Rs 1,000 crore worth of shares is allocated to NTPC shareholders. Retail investors can bid up to Rs 2 lakh, while NTPC shareholders are eligible to bid up to Rs 4 lakh under a special reservation category.

The latest grey market premium (GMP) for the IPO stands at Rs 1.40, a sharp decline from an earlier Rs 25, reflecting changing market sentiments.

The funds raised will primarily be used to reduce debt, with 75% of the proceeds earmarked for this purpose. NTPC Green Energy Ltd. (NGEL), the renewable energy arm of NTPC Ltd., plans to expand its operations, including battery storage systems, hybrid energy projects, and a green hydrogen hub in Andhra Pradesh.

Founded in 2022, NGEL manages a renewable energy portfolio of 25.67 gigawatts (GW), of which 2.93 GW is operational. This includes 20.32 GW in solar and 5.35 GW in wind energy. The company aims to add 3 GW of capacity this fiscal year and 8 GW by FY27.

Despite its ambitious growth plans, NGEL faces significant risks. Over 87% of its revenue comes from its top five clients, with one contributing nearly half of the total revenue.

Moreover, a substantial portion of its renewable energy projects is concentrated in Rajasthan, exposing the company to potential regional disruptions. Supply chain challenges and raw material price fluctuations also pose hurdles as the company scales operations.