NTPC Green Energy Lists At 3.33% Premium Over Issue Price
Shares of state-owned NTPC Ltd.’s renewable arm, NTPC Green Energy Ltd., listed on the BSE on Wednesday at Rs 111.60 apiece, a premium of 3.33% over the issue price of Rs 108 apiece. The stock listed at Rs 111.50 per share on the National Stock Exchange, marking a premium of 3.24%.
This offering worth Rs 10,000 crore, which marked India’s third largest IPO of the year, after Hyundai Motor India Ltd. and Swiggy Ltd., closed on Nov. 22, and was subscribed 2.42 times, led by retail buyers. The IPO consisted of a fresh issue of shares. The company raised Rs 3,960 crore from anchor investors a day before its initial public offering opened for bidding.
NGEL plans to utilise 75% or Rs 7,500 crore of the IPO proceeds towards debt repayment. The company plans to repay debt worth Rs 4,000 crore in the current fiscal and Rs 3,500 crore in the next fiscal.
The balance 25% will be used for general corporate purposes.
IDBI Capital Market Services Ltd., HDFC Bank Ltd., IIFL Securities Ltd. and Nuvama Wealth Management Ltd. are the book running lead managers of the NTPC Green Energy IPO, while Kfin Technologies Ltd. is the registrar for the issue.
NTPC Green Business
NTPC Green Energy is NTPC Ltd.’s renewable energy arm, which was incorporated in 2022.
The company’s total portfolio stands at 25.67 gigawatts, with an operational portfolio of 2.93 GW. Its contracted and awarded capacity stands at 14.7 GW and projects under pipeline stand at 10.98 GW. Its total portfolio consists of 20.32 GW of solar capacity and 5.35 GW of wind capacity.
As of financial year 2024, NGEL’s market share, depending on how many bids it won, stood at 7%. This has declined from 18% in fiscal 2022, according to Morgan Stanley.
The company also plans to expand its portfolio and intends to install battery energy storage systems and hybrid contracts. It is also developing a green hydrogen hub in Andhra Pradesh.