NTPC Green Energy IPO Live: NTPC Green Energy IPO opens for subscription. Should you invest?

• QIB: NIL
• NIIs: 0.01 times
• Retail: 0.11 times
• Employee portion: 0.01 times
• Reservation portion Shareholder: 0.02 times

Total: 0.02 times

Key risks include dependency on government utilities for revenue, cost volatility in renewable energy components, and execution challenges for upcoming projects. The company’s geographic concentration in Rajasthan, where over 60% of its capacity resides, also poses a risk.

Ventura Securities advises investors to subscribe to the issue.

NTPC shares gained 1.16% on the NSE to trade at ₹370.95. The IPO of its wholly-owned subsidiary NTPC Green Energy opens today.

The much-awaited ₹10,000-crore IPO of ​NTPC Green Energy​ opens today for public subscription at a price band of ₹102-108. The IPO is entirely fresh issue by the largest renewable energy public sector enterprise. Before the launch of IPO, NTPC was the only shareholder with 100 per cent stake.

Meanwhile, as part of IPO process, NTPC Green Energy has raised ₹3,960 crore via anchor book on Monday with LIC being the biggest investor worth ₹500 crore.

The company has finalised allocation of nearly 36.67 crore equity shares to anchor investors at a price of ₹108 per share, the subsidiary of NTPC said in its filing to exchanges.

Marquee global institutional investors that became shareholders in NTPC Green Energy via anchor book included New World Fund, International Growth and Income Fund, 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.

As per the exchange data filing, Life Insurance Corporation of India was allotted 12.63 per cent, New World Fund 5.29 per cent, Goldman Sachs India 5.70 per cent and Government of Singapore 5.31 per cent, among the top anchor investors.

KS Badri Narayanan of businessline writes | ​Click to read the full report here​

SBI Securities recommends subscribing to the IPO at the upper price band, emphasising long-term growth prospects aligned with India’s renewable energy goals. Investors should weigh potential returns against the inherent risks in the renewable energy sector.

NTPC Green Energy raised ₹3,960 crore via anchor book on Monday with LIC being the biggest investor worth ₹500 crore.

The much-awaited ₹10,000-crore IPO of NTPC Green Energy opens today for public subscription at a price band of ₹102-108. The IPO is entirely fresh issue by the largest renewable energy public sector enterprise. Before the launch of IPO, NTPC was the only shareholder with 100 per cent stake.

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 bid lot size for the IPO is 138 Equity Shares and in multiples thereof and the IPO will close on November 22. 

Meanwhile, as part of IPO process, NTPC Green Energy has raised ₹3,960 crore via anchor book on Monday with ​​LIC being the biggest investor worth ₹500 crore​​.

​NTPC Green Energy Ltd (NGEL), a wholly owned subsidiary of NTPC Ltd, is set to launch its initial public offering (IPO) on November 19​, with the issue closing on November 22. The company is seeking to raise ₹10,000 crore through a fresh issue of shares priced between ₹102 and ₹108 per share.

NGEL, India’s largest renewable energy public sector enterprise excluding hydropower, operates a portfolio of solar and wind power projects with an operational capacity of around 3.3 GW (Solar – 3.2 GW and Wind – 0.1 GW) and projects awarded and contracted add up to 13.6 GW as of September 2024, with a target to reach 60 GW of non-fossil capacity by FY32.

NTPC Green Energy, the renewable energy arm of the NTPC, mobilised ₹3,960 crore from anchor investors on Monday, a day before its initial share-sale opening for public subscription.

New World Fund Inc, Goldman Sachs Funds, Government of Singapore, Life Insurance Corporation of India, ICICI Prudential Mutual Fund (MF), Nippon India MF, DSP MF and Kotak MF are among the anchor investors, according to a circular uploaded on the BSE’s website. - PTI