Today is the last day to bid for the IPO of NTPC Green Energy Limited. This issue has been subscribed a total of 0.99 times in two trading days. This IPO has been subscribed 2.53 times in the retail category, 0.79 times in the Qualified Institutional Buyers (QIB) category and 0.36 times in the Non-Institutional Investors (NII) category.
The company's shares will be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 27. The company wants to raise ₹10,000 crore through this issue. For this, NTPC Green Energy is issuing 925,925,926 fresh shares worth ₹10,000 crore. The existing investors of the company are not selling even a single share.
If you are also planning to invest money in it, then we are telling you how much you can invest in it.
What is the minimum and maximum amount that can be invested? NTPC Green Energy has fixed the IPO price band at ₹102 to ₹108 per share. Retail investors can bid for a minimum of one lot i.e. 138 shares. If you apply for 1 lot as per the upper price band of IPO of ₹ 108, then you will have to invest ₹ 14,904 for it.
At the same time, retail investors can apply for maximum 13 lots i.e. 1794 shares. For this, investors will have to invest ₹ 193,752 as per the upper price band.
10% of the issue reserved for retail investors The company has reserved 75% of the issue for Qualified Institutional Buyers (QIB). Apart from this, 10% share is reserved for retail investors and the remaining 15% share is reserved for non-institutional investors (NII).
Company develops portfolio of renewable power projects NTPC Green Energy develops a portfolio of utilityscale renewable power projects. The company will use Rs 7500 crore of the money raised from the IPO to repay the debt of its subsidiary NTPC Renewable Energy (NREL).
The plan is to use the remaining amount for general corporate purposes. NREL had borrowings of Rs 16,235 crore on a consolidated basis till July 2024. NTPC was earlier known as National Thermal Power Corporation. It has an installed capacity of over 76 GW, making it India's largest integrated power company.
What is IPO? When a company issues its shares to the general public for the first time, it is called Initial Public Offering i.e. IPO. The company needs money to expand its business. In such a situation, instead of taking loan from the market, the company raises money by selling some shares to the public or issuing new shares. For this the company brings IPO.
Graphics Source: VaskarAssets
