The IPO of NTPC Green Energy Limited, a subsidiary of government-owned NTPC, will open on Tuesday, November 19. Investors will be able to bid on this public issue until November 22. The company’s shares will be listed on the Bombay Stock Exchange (BSE) and the 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 new shares worth ₹10,000 crore. The company’s existing investors aren’t even selling a single share.
If you are also planning to invest money in it, we tell you how much you can invest in it.
What is the minimum and maximum amount that can be invested?
NTPC Green Energy has set the IPO price band at ₹102 to ₹108 per share. Individual investors can bid on at least one lot, i.e. 138 shares. If you are applying for 1 lot as per the upper IPO price band of ₹108, then you will need to invest ₹14,904 for that.
At the same time, retail investors can apply for a maximum of 13 lots, or 1,794 shares. For this, investors will have to invest ₹193,752 as per the upper price band.
10% of the issue reserved for individual investors
The company has reserved 75% of the issue for Qualified Institutional Buyers (QIB). Apart from this, 10% of the share is reserved for retail investors and the remaining 15% is reserved for non-institutional investors (NII).
The company is developing a portfolio of renewable energy projects
NTPC Green Energy is developing a portfolio of large-scale renewable energy projects. The company will use Rs 7,500 crore of the money raised through the IPO to repay the debt of its subsidiary NTPC Renewable Energy (NREL).
It is intended 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. Its installed capacity is 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 an initial public offering, i.e. an IPO. The company needs money to expand its business. In such a situation, instead of taking a loan from the market, the company raises funds by selling some shares to the public or issuing new shares. For this, the company brings an IPO.