New Delhi: The IPO of NTPC Green Energy, the renewable energy arm of the NTPC is all set to open on Tuesday. Ahead of IPO, NTPC Green Energy collects Rs 3,960 crore from anchor investors on Monday.
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.
The company has allotted 36.66 crore equity shares to 107 funds at Rs 108 apiece, which is also the upper end of the price band. This aggregates the transaction size to Rs 3,960 crore.
The Rs 10,000-crore initial share-sale is entirely a fresh issuance of equity shares with no offer-for-sale (OFS) component. The issue, with a price band of Rs 102 to Rs 108 per share, will be available for public subscription during November 19 to 22.
Proceeds from the IPO to the tune of Rs 7,500 crore will be used to repay or prepay part or all of its subsidiary NTPC Renewable Energy Ltd’s (NREL) outstanding loans and besides a portion will be utilised for general corporate purposes.
Bajaj Broking in its IPO Note has recommended ‘Subscribe for Long Term’ for the initial share-sale.
“If we attribute annualized FY25 earnings to post-IPO fully diluted equity base, then the asking price is at a P/E of 257.14 and based on FY24 earnings, the P/E stands at 263.41. Thus the issue appears aggressively priced. But considering its current established capacities and future expanded capacities, this is a pure long term story. As clarified by the management, the company has no impact of US policy on renewable energy as it is having operations only in India,” it said.
“Investors who are well-informed and have surplus cash might consider investing moderate funds for the long term, as this represents a pure long-term investment opportunity,” Bajaj Broking added.
NTPC Green Energy is a ‘Maharatna’ central public sector enterprise with renewable energy portfolio, including solar and wind power assets, spread across more than six states.
IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities and Nuvama Wealth Management are the book running lead managers to the issue.
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