NTPC Green Energy IPO subscribed 88%

21 Nov 2024 , 03:27 PM

Investors are responding favourably to NTPC Green Energy’s first public offering. The initial public offering (IPO) of the renewable energy company was 88% booked as of 15:23 pm on Day 2, with the retail investor component being subscribed 2.24 times and the shareholder category booking 94%.

The QIB portion was booked 74% and NII portion was booked 30%.

Ten percent of the ₹10,000-crore book-building issuance is reserved for current shareholders of NTPC Limited, the company’s parent.

The shareholders’ quota is open to stockholders who have NTPC shares in their demat accounts on the day NTPC Green Energy submitted its red herring prospectus. The IPO listing date for NTPC Green Energy has been provisionally set for November 27, and the bidding will finish on November 22.

A portion of shares are set aside for parent company shareholders when a listed company’s subsidiary files its RHP. We call this the shareholder quota. The shareholder quota usually makes up between 5% and 15% of the entire offer amount.

The demand for new public issues rises in tandem with the principal markets’ ongoing IPO frenzy. An applicant’s chances of receiving shares can be increased by choosing to apply under the shareholder quota and the retail/non-institutional investor category. Investors can therefore profit by owning a small number of shares in businesses having subsidiaries that are anticipated to go public.

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