NTPC Green Energy IPO: Will The IPO Open On Nov 18? Date, GMP, Prices, Allotment, Listing Details To Apply

NTPC Green Energy IPO: The Rs 10,000 crore initial public offering (IPO) is much awaited in the primary market of India in November month. News speculates that the IPO will soon file for its red herring prospectus and the public offer will open on November 18. These are mere speculations and could not be confirmed by GoodReturns. NTPC Green Energy IPO is government-backed and its parent company is power giant NTPC Ltd. The IPO is proposed to be listed on both BSE and NSE.

NTPC Green Energy 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.

The company has a portfolio of both solar and wind power assets with presence across multiple locations in more than 6 states. Their operational capacity was 3,071 MW of solar projects and 100 MW of wind projects across 6 states as of August 31, 2024.

Key strengths of the IPO highlighted by brokerage Axis Securities are:

- Promoted by NTPC Ltd, which has extensive experience in executing large-scale projects, long-term relationships with off-takers and suppliers and financial strength.

- Portfolio of 14,696 MWs solar and wind projects as of June 30, 2024, with diversification across geographies and off-takers.

- Experienced team in renewable energy project execution and procurement as well as operating and maintenance.

- Growing revenues along with strong credit ratings that enable a low cost of capital employed.

Experienced Management Team.

NTPC Green Energy filed its draft prospectus on September 18, 2024. Sebi has approved the IPO on October 22, 2024. The public offer is purely a fresh issue worth Rs 10,000 crore.

How Much Time Does It Take For IPO To Open?

As per brokerage Sharekhan's note on its website, the DRHP is filed with SEBI, where it undergoes a thorough review process. SEBI examines the DRHP to ensure that all regulatory requirements are met and the information provided is accurate and comprehensive. Once SEBI reviews and approves the DRHP, the final prospectus is prepared, which includes all the necessary details. This is also known as RHP or Red Herring Prospectus. The RHP is the final version of the prospectus, which incorporates SEBI's feedback and provides definitive details about the IPO.

Typically, the entire process takes about six to nine months. First is the filing of the draft prospectus, and then Sebi's approval which could take about 1-2 months. Only when Sebi approves the IPO, the company can file the red herring prospectus which includes the price bands, opening and closing dates, anchor investors' bidding, allotment status, and listing of shares timeline. These dates are generally tentative in the RHP.

However, the red herring prospectus is usually filed three days prior to the IPO launch. Now that media reports are predicting the IPO to launch on November 18, could the RHP be filed three days prior to the opening? It will be keenly watched.

NTPC Green Energy IPO 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.

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.

NTPC Green Energy IPO GMP Today:

As per IPO Watch, currently, its grey market premium (GMP) is at Rs 24, unchanged from the previous session. While the Kostak rate is at Rs 500 for the IPO.

NTPC Green plans to utilise the proceeds of the IPO 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.