NTPC Green Energy Limited's initial public offering (IPO), through a book-building process, offers a fresh issue of 92.59 crore shares. The state-owned renewable energy producer aims to raise ₹10,000 crore from the public issue. The IPO opened for public subscription on Tuesday, November 19 and will close on Friday, November 22.
The public issue was subscribed 33 per cent on the first day. Among the three segments, the retail investors subscribed to the IPO the most, at 1.33 times the shares offered. The Non-Institutional Investors (NIIs) followed the retail lead by subscribing 16 per cent of their allocated shares. The Qualified Institutional Buyers (QIBs) did not subscribe to the IPO on the first day, according to the Bombay Stock Exchange (BSE) IPO data.
The State-owned renewable energy giant raised around ₹3,960 crore from investors in its anchor round held on Monday, November 18. 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.
As of November 19, the State-owned NTPC Green Energy Limited's initial public offer has a grey market premium (GMP) of ₹1.15 per share.
Grey market premium is the investors' willingness to pay more for a public issue. With the upper price band at ₹108, the shares are expected to be listed on the stock markets at ₹109.15 per share, a premium of 1.06%, according to Investorgain.com.
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 issue is expected to make a BSE and NSE debut on Wednesday, November 27.
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