NTPC Green IPO Subscribed 2.4 Times In Three Days

NTPC Green, the renewable energy arm of NTPC witnessed a moderate response over its Initial Public Offering (IPO), compared to the highly subscribed IPOs of recently-listed solar energy companies.

NTPC Green, the renewable energy arm of NTPC witnessed a moderate response over its Initial Public Offering (IPO), compared to the highly subscribed IPOs of recently-listed solar energy companies.

As per the data available, NTPC Green IPO was subscribed 2.4 times on the final day of bidding. The issue received bids of 1,42,55,97,546 shares against the offered 59,31,67,575 equity shares, at a price band of ₹ 102-108, according to the data available on the stock exchanges.

Subscription distribution 

Qualified Institutional Buyer Portion was subscribed 3.32 times. Retail Portion and Non-Institutional Investors Portion were subscribed 3.39 times and 0.81 times respectively. The reservation Portion was subscribed 1.57 times. Employee Portion was subscribed 0.78 times.

NTPC Green Energy is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of September 30, 2024 and power generation in Fiscal 2024, according to a CRISIL Report, November 2024. Its renewable energy portfolio encompasses both solar and wind power assets with presence across multiple locations in more than six states which helps mitigate the risk of location-specific generation variability. Its operational capacity was 3,220 MW of solar projects and 100 MW of wind projects across six (6) states as of September 30, 2024.

Diversified portfolio 

As of September 30, 2024, its “Portfolio” consisted of 16,896 MWs including 3,320 MWs of operating projects and 13,576 MWs of contracted and awarded projects. Its Capacity under Pipeline together with its Portfolio consisted of 26,071 MWs. It had 17 off-takers across 41 solar projects and 11 wind projects.

It is focused on developing a portfolio of utility-scale renewable energy projects, as well as projects for public sector undertakings (“PSUs”) and Indian corporates. The projects generate renewable power and feed that power into the grid, supplying a utility or off-taker with energy. For its operational projects, we have entered into long-term Power Purchase Agreements (“PPAs”) or Letters of Award (“LoAs”) with an off-taker that is either a Central government agency like the Solar Energy Corporation of India (“SECI”) or a State government agency or public utility.