The much-anticipated IPO of NTPC Green Energy, a subsidiary of NTPC Ltd, will officially open for bidding on November 19, 2024. This IPO is poised to be one of the largest offerings of 2024, with a target to raise Rs 10,000 crore through a completely fresh issue of shares. Once it concludes, NTPC Green Energy’s IPO will rank as the third-largest of the year, following Hyundai Motors India’s monumental Rs 28,756 crore IPO and Swiggy’s Rs 11,327 crore listing. The company’s debut on the stock market is expected to generate significant investor interest, especially with the growing demand for renewable energy projects.
NTPC Green Energy was established in April 2022 as a fully owned subsidiary of NTPC Ltd. It focuses on developing and expanding renewable energy projects in India, with particular emphasis on solar and wind energy. As of August 31, 2024, the company boasts an operational capacity of 3,071 MW in solar energy projects and 100 MW in wind energy capacity across six states. This strategic positioning is aimed at contributing to India’s broader renewable energy goals and aligning with the country’s efforts to reduce carbon emissions. By increasing its green energy portfolio, NTPC Green Energy is not only seeking to meet the increasing demand for clean energy in India but also solidifying its place in the market as a key player in the green energy space.
The NTPC Green Energy IPO will run from November 19 to November 22, 2024. The price band for the IPO has been set between Rs 102 and Rs 108 per share, allowing investors to participate in this high-profile offering. The fresh issue will consist of 92.59 crore shares, making this a substantial opportunity for investors looking to be part of the green energy revolution. For retail investors, the minimum lot size is 138 shares, requiring a minimum investment of Rs 14,904. Smaller non-institutional investors (sNII) can apply for a minimum of 14 lots, which equals 1,932 shares, with an investment of Rs 2,08,656, while institutional investors (bNII) will need to invest in a minimum of 68 lots, amounting to Rs 10,13,472.
After the subscription period ends, the finalization of share allotments is expected to take place by November 25, 2024, with the shares listing on the stock exchanges on November 27, 2024. The shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), providing wide access to investors. For those keeping a close eye on the grey market, the premium for NTPC Green Energy’s IPO has been reported at Rs 2, which indicates that the shares might list at around Rs 110 per share. This suggests an expected gain of roughly 1.85% for investors subscribing at the upper price band of Rs 108.
The IPO comes at a time when India is seeing a rising interest in green and renewable energy stocks, as investors and institutions increasingly look to support sustainable development. NTPC Green Energy, with its substantial capacity and a strategic roadmap to expand its green energy projects, stands poised to capitalize on this demand. For investors, the IPO represents a unique opportunity to participate in one of India’s largest energy transitions, with the potential for steady growth in the clean energy sector. With growing environmental concerns and a clear government push toward renewable energy, NTPC Green Energy’s market debut could signal an exciting step toward a greener, more sustainable future in India’s energy landscape.
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