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The ₹10,000-crore initial public offering of NTPC Green Energy closes today for public subscriptions. The issue has been so far subscribed 0.93 times or 93 per cent, thanks mainly to retail investors. The retail investors’ portion has been subscribed more than two times. The price band is ₹102-108 and the lot size is 138 shares.
While 75 per cent of the IPO portion is reserved for Qualified Institutional Buyers (QIBs), 15 per cent for Non-Institutional Investors (NIIs) and the remaining 10 per cent for Retail Investors, the company has also reserved ₹200 crore worth shares for its employees and ₹1,000 crore (or 10 per cent of the issue size) for NTPC shareholders. Employees will get these shares at a discount of ₹5 a share from the final issue price, the company said.
NGEL is the renewable energy arm of India’s largest power generator, NTPC. The IPO received bids for 54.96 crore shares against 59.32 crore shares on offer, as per the NSE.
The portion for retail investors was subscribed 2.38 times, while the category for non-institutional investors (NIIs) was subscribed 34 per cent. The QIB portion was subscribed 75 per cent, while the employees’ portion also remained undersubscribed at 0.40 times or 40 per cent. However, the shareholders’ quota was fully subscribed.
Anchor investors
On Monday, NGEL raised ₹3,960 crore from anchor investors, with state-run corporation LIC being the biggest investor, contributing ₹500 crore.
Of the total 36.67 crore shares for anchor investors, priced at ₹108 per share, 14.53 crore shares were allocated to 16 domestic mutual funds through a total of 72 schemes. LIC was allotted 12.63 per cent, New World Fund 5.29 per cent, Goldman Sachs India 5.70 per cent and the Government of Singapore 5.31 per cent, among others.
Other anchor investors include Goldman Sachs, Morgan Stanley, New York State Teachers Retirement System, Government of Singapore, Monetary Authority of Singapore, T Rowe, Abu Dhabi Investment Authority and BNP Paribas.
NTPC Green Energy will utilise ₹7,500 crore from the net issue proceeds to repay debt of its subsidiary NTPC Renewable Energy. Additionally, the funds will help the company repay or prepay outstanding borrowings and meet general corporate purposes.
Domestic institutional investors include ICICI Prudential Mutual Fund, Nippon Life India, Kotak AMC, Aditya Birla Sun Life AMC, DSP Mutual Fund, SBI Life Insurance, HDFC Life Insurance, etc.
IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities and Nuvama Wealth Management are the book running lead managers to the issue.
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