The government-owned NTPC Green Energy IPO has been subscribed to 33 per cent on the first day. NTPC Green Energy, the clean energy arm of NTPC, opened its IPO on November 19. Investors can bid (subscribe) until November 22. The company has set the share price band for this IPO between ₹102 and ₹108 per share. NTPC Green Energy has raised ₹3,960 crore from anchor investors.
Retail Investors’ Subscription
Retail investors have subscribed to the NTPC Green Energy IPO 1.33 times the shares offered so far. The portion for non-institutional investors (NIIs) has been subscribed to 16% of the shares on offer, while the portion for qualified institutional buyers (QIBs) has not received any bids on the first day. The company plans to use the funds raised from this IPO to repay or prepay some or all of the outstanding debt of its subsidiary, NTPC Renewable Energy Limited (NREL).
What is the GMP?
As of November 20, the initial public offer of NTPC Green Energy Limited has a grey market premium (GMP) of ₹0.80 per share. According to Investorgain.com, the shares are expected to be listed at ₹108.8. On November 19, the GMP was ₹1.15 per share. The company’s shares are set to be listed on November 27. This IPO has a lot of 138 shares.
IPO Share Reservation Breakdown
The NTPC Green Energy IPO has reserved:
- At least 75% of the shares for qualified institutional buyers (QIBs)
- No more than 15% for non-institutional investors (NIIs)
- No more than 10% of the offer for retail investors
- Additionally, equity shares aggregating up to ₹20 crore have been reserved for employees, who are being offered a discount of ₹5 per equity share.