NTPC Green Energy IPO raised ₹3960 crore from anchor book

19 Nov 2024 , 09:34 AM

The largest renewable energy public sector company, NTPC Green Energy has raised ₹3960 crore from anchor book. The issue has opened for subscription today and will close on November 22.

The IPO of NTPC Green Energy is a completely a fresh issue equity shares with no offer-for-sale component. The price band for the IPO has been fixed at ₹102-108 per share.

NTPC Green Energy has finalized the allocation of 36.67 crore equity shares to anchor investors at Rs 108 per share, as stated in its filing to the exchanges. Some of the marquee global institutional investors in the anchor book include New World Fund, Goldman Sachs, Morgan Stanley, and the Government of Singapore, among others.

Domestic institutional investors, including LIC of India, ICICI Prudential Mutual Fund, Kotak AMC, SBI Life Insurance, and HDFC Life Insurance, also participated in the allocation. A total of 14.53 crore shares were allocated to 16 domestic mutual funds through 72 schemes.

Before the IPO launch, NTPC owned 100% of NTPC Green Energy. The company plans to use Rs 7,500 crore of the net issue proceeds to repay the debt of its subsidiary, NTPC Renewable Energy. Post-repayment, the subsidiary’s borrowings are expected to reduce from Rs 17,057.5 crore to Rs 9,557.5 crore.

NTPC Green Energy currently has an operational capacity of 3,320 MW from solar and wind projects across six states. Additionally, it has 13,576 MW of contracted projects and 9,175 MW under development.

The company has reserved Rs 200 crore worth of shares for its employees and Rs 1,000 crore (10% of the issue size) for NTPC shareholders. Employees will receive shares at a Rs 5 discount per share.

IDBI Capital Markets, HDFC Bank, IIFL Capital Services, and Nuvama Wealth Management are the merchant bankers for the issue.