State-owned NTPC Green Energy Limited's initial public offering (IPO) is scheduled to open for public bidding on Tuesday, November 19 and close on Friday, November 22. The renewable energy firm's IPO will have its anchor round of investing on Monday, November 18.
NTPC Green Energy aims to raise nearly ₹10,000 crore through this book-built offer of a fresh issue of 92.59 crore shares. The company has set the public offer's price band at the range of ₹102 to ₹108 per equity share with a face value of ₹10 per share. The lot size of the public offer is 138 shares per lot.
The IPO is reserved not less than 75 per cent for the Qualified Institutional Buyers (QIB), not more than 15 per cent for Non-Institutional Investors (NII), and not more than 10 per cent for retail investors. Employees have been reserved equity shares aggregating up to 20 crore, and a discount of ₹5 per equity share is offered to eligible employees.
IDBI Capital Market Services Limited, HDFC Bank Limited, IIFL Securities Ltd and Nuvama Wealth Management Limited are the book runners for the public issue, while Kfin Technologies Limited is the registrar.
As of November 17, the grey market premium (GMP) for the public issue is at Re 1 per share. Considering the upper price band limit of the share at ₹108, the shares are expected to be listed on the domestic stock indices at ₹109 per share, a gain of 0.93 per cent, according to Investorgain.com.
Grey Market Premium (GMP) shows investors' willingness to pay more for a public issue. The GMP for NTPC Green Energy has dropped significantly in the last few days to Re 1. The IPO's GMP was at ₹9 per share as of November 12.
NTPC Green Energy Limited is a wholly-owned subsidiary of the State-owned NTPC Limited. The renewable energy generation firm specialises in completing projects using both organic and inorganic methods.
The company plans to use the money raised from the public issue towards investment in its wholly-owned subsidiary, NTPC Renewable Energy Limited (NREL). NTPC Green Energy also plans to repay or prepay in full or in part of certain outstanding borrowings and the remaining for general corporate purposes.
The public offer is expected to make a BSE and NSE debut on Wednesday, November 27.
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