The much-anticipated IPO of NTPC Green Energy, a subsidiary of NTPC, listed on the stock exchanges with mixed reactions. The stock opened on the BSE at ₹111.60 per share, marking a 3.33% premium over the issue price, while on the NSE, it debuted at ₹111.50 per share. Despite the subdued opening, the shares rallied over 10% on the first trading day, hitting the upper circuit. On the BSE, the stock surged to ₹122.75, reflecting a 13.66% premium over the IPO price.
The IPO's price band was set between ₹102 and ₹108 per share, with a lot size of 138 shares, requiring a minimum investment of ₹14,904 from retail investors. Employees were offered a ₹5 discount per share. The IPO, which opened on November 19, 2024, and closed on November 22, 2024, saw share allotment finalized on November 25. The total IPO size stood at ₹10,000 crore, with the issuance of 92.59 crore fresh shares. For anchor investors, the IPO opened on November 18, raising ₹3,960 crore. Notably, 50% of the anchor allocation has a short lock-in period of just 30 days.
NTPC Green IPO was entirely a fresh issue of 92.59 crore shares. Post the issue, promoter shareholding in the company will be reduced to 89 percent from 100 percent before the IPO. The company raised ₹3,960 crore from anchor investors on November 18, 2024. Retail investors could apply with a minimum lot size of 138 shares, requiring a minimum investment of ₹14,904.The company plans to use the net proceeds from its fundraising primarily for two objectives: first, to invest in its wholly-owned subsidiary, NTPC Renewable Energy Limited (NREL), to facilitate the repayment or prepayment, either in full or in part, of certain outstanding borrowings availed by NREL, and second, for general corporate purposes.NTPC Green has allocated 1.94 crore equity shares for its eligible employees, offering them a ₹5 per share discount. Of the net offer, 26.37 percent is reserved for qualified institutional bidders (QIBs). Non-institutional investors (NIIs) and retail investors will have allocations of 13.19 percent and 2.1 percent of the net offer, respectively.