NTPC Green Energy IPO: Data, Price, GMP, Allotment, All Details Here; How To Be Eligible For Rs 10,000 Cr IPO

NTPC Green Energy IPO: The Rs 10,000 crore green energy IPO is expected to open in the third quarter of FY25. The price band and dates of the IPO are yet to be announced. However, there is one way to be eligible for this IPO, and it is by holding Maharatna PSU giant NTPC's shares. Because NTPC Green Energy is going to have a shareholders' quote as well.

How To Be Eligible For The IPO?

Apart from applying for the IPO through normal routes, and becoming an investor of the parent company, NTPC is also another method.

As per Zerodha, the IPO will offer a quota for existing shareholders of NTPC. Investors holding NTPC shares as of the date of the Red Herring Prospectus (RHP), which will be filed later, can participate in this category. To boost the chances of allotment, potential investors may consider buying NTPC shares now, making it a strategic move ahead of the NTPC green IPO date.

Additionally, IPO has a reservation for eligible employees, who will receive a discount for participating in this portion.

NTPC Green Energy IPO Dates:

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 October - and December quarter 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.

NTPC Green Energy IPO Price Band:

On its website, brokerage ICICI Direct said, 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 Key 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.

NGEL is an umbrella company for the green business initiatives of NTPC and 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.