NTPC Green Energy IPO: Will Rs 10,000 Cr IPO Open Next Week? Date GMP, Price, Allotment, Listing, Details Here

NTPC Green Energy IPO: Maharatna PSU energy giant, NTPC-backed Rs 10,000 crore green energy IPO is one of the most awaited public offer in 2024. And as per media reports, this IPO is likely to open in the coming days. NTPC Green will rival giants like Adani Green Energy and will be listed on BSE and NSE after its IPO.

Some of the key strengths of NTPC Green IPO, which is highlighted by Zerodha on its website are:

NTPC Green Energy is among the top 10 renewable energy players in India in terms of operational capacity as of June 30, 2024. Notably, NTPC Green, with the third-largest contracted capacity of 15GW, is trailing Renew Power, which has a 16GW capacity, and Gautam Adani-backed company Adani Green Energy, with a 27GW capacity, is in the lead.

Further, the NTPC Green Energy IPO is backed by NTPC and is under the ambit of the Government of India. Zerodha highlighted that NTPC has extensive experience in executing large-scale projects, long-term relationships with off-takers and suppliers, and financial strength.

Additionally, NTPC Green's growing revenues along with strong credit ratings enable them to have a low cost of capital employed. Not just that it is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of June 30, 2024, and power generation in Fiscal 2024.

NGEL is an umbrella company for NTPC's green business initiatives. It undertakes projects through organic and inorganic routes and aims to be the flag-bearer of NTPC's green energy journey to achieve the ambitious target of 60 GW by FY 32.

When Will NTPC Green Energy IPO?

Market regulator Sebi has approved NTPC Green Energy IPO. Hence, the majority of them are expecting the mega IPO to open in November month. However, the broker Antique Stock Broking predicts the IPO to open anytime between the October - and December quarters of FY25.

Antique's latest note said, the NTPC Green Renewable (NGEL) IPO is in progress and is expected to conclude in 3QFY25E. NGEL is expected to add 3 GW in FY25E; in 1HFY25 it has added 0.4 GW. The catalyst for the stock is capacity commissioning in thermal & renewables and the valuation benchmark of NGEL in the IPO.

Nonetheless, new media reports are stating that NTPC Green Energy IPO is likely to file for a red herring prospectus on Monday, November 11. Other media reports state that the IPO will open on November 18.

According to the News18 media report, NTPC Green Energy IPO is likely to file RHP on Monday, November 11. Eventually, those who bought NTPC shares till Friday, November 8, 2024, will be considered to be eligible investors for the shareholder quota.

NTPC Green Energy IPO has a shareholding quota for shareholders of NPTC. This means that shareholders who hold NTPC shares as of the date of the Red Herring Prospectus (RHP) are eligible to participate in this quota category.

On the other hand, sources related to the matter told Business Today, that NTPC Green IPO is likely to open on the third week of November, which would be around November 18. These sources also told the news agency that NTPC Green's RHP is expected to be filed this week.

GoodReturns could not confirm the media reports on the matter. Also, official announcements are yet to be made. Hence, NTPC Green Energy IPO's key dates will be on the look out.

NTPC Green Energy IPO Price Band:

Brokerage ICICI Direct on its website has stated that the price band is likely to be in the range of INR 100-120 per share, depending on market conditions at the time of the listing.

Other Details of the IPO:

1. NTPC Green Energy filed for IPO draft prospectus with Sebi on September 18, 2024. The public offer is purely a fresh issue worth Rs 10,000 crore.

2. The proceeds of the IPO will be used for investment in its wholly owned subsidiary, NTPC Renewable Energy Limited (NREL) for repayment/ prepayment, in full or in part of certain outstanding borrowings availed by NREL. The investment will be to the tune of Rs 7,500 crore. A portion will be kept for general corporate purposes among others.

3. The IPO size will be reserved for qualified institutional buyers (QIBs), non-institutional investors (NIIs), retail individual investors (RII) and employees.

4. Booking running lead managers of the IPO are IDBI Capital Markets & Securities, HDFC Bank, IFL Securities, and Nuvama Wealth Management. The registrar of the IPO is KFinTechnologies.

5. Grey Market Premium: The last grey market premium (GMP) on IPO Central for NTPC Green Energy stood at Rs 34 per share. While Rs 6,500 was subject to SAUDA.

6. After the IPO, the other processes are allotment of shares, initiation of refunds, credit of equity shares, and listing. Proposed equity shares will be listed on BSE and NSE.