The shares of NTPC Green Energy Limited, a subsidiary of government company NTPC, were listed in the market today i.e. on 27th November. It was listed on NSE at Rs 111.5 per share with a premium of 3.2%. Its listing on BSE has been done at Rs 111.6 per share with a premium of 3.3%. Its issue price was Rs 108 per share.
The IPO of NTPC Green Energy Limited, a subsidiary of government company NTPC, was subscribed a total of 2.55 times. The company has raised ₹10,000 crore through this issue. For this, NTPC Green Energy had issued 925,925,926 fresh shares worth ₹10,000 crore.
10% of the issue reserved for retail investors The company had reserved 75% of the issue for Qualified Institutional Buyers (QIB). Apart from this, 10% share was reserved for retail investors and the remaining 15% share was 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
