NTPC Green Energy IPO Day 2 LIVE Updates: The initial day of bidding for the government-owned NTPC Green Energy IPO commenced successfully on Tuesday, November 19, with a significant turnout of retail investors who fully subscribed to the segment. Before the IPO launch, NTPC Green Energy had garnered ₹3,960 crore from anchor investors. On its first day, NTPC Green Energy, the clean energy division of NTPC, achieved a subscription rate of 33%, primarily driven by retail investors who subscribed to 1.33 times the available shares.
The Non-Institutional Investors (NII) segment accounted for 16% of the shares available for subscription, whereas the qualified institutional buyers (QIBs) segment did not receive any bids on the initial day. The employee portion was subscribed 17%, while the shareholder portion was booked 57%.
The initial public offering, valued at ₹10,000 crore, comprises entirely of new equity shares, with no segment designated for an offer-for-sale (OFS). Investors have the opportunity to subscribe to this offering, which has established a price range of ₹102 to ₹108 per share, from November 19 to November 22. Out of the total proceeds from the IPO, which amount to ₹7,500 crore, a substantial portion will be allocated to the repayment or prepayment of some or all outstanding loans of its subsidiary, NTPC Renewable Energy Ltd (NREL), while a portion will also be reserved for general corporate purposes.
NTPC Green Energy is recognised as a central public sector enterprise with ‘Maharatna’ status, concentrating on renewable energy through solar and wind power projects across more than six states.
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NTPC Green Energy IPO Day 2 LIVE Updates: All you need to know about the firm’s projects
As of September 30, 2024, the company engaged with 17 offtakers across a total of 41 solar projects and 11 wind projects. The term “offtakers” refers to entities with which the company has operational megawatts, whether contracted or awarded, including those with signed Power Purchase Agreements (PPAs) or Letters of Authorization (LoAs). Notably, all 9 of the offtakers from which the company generated revenue during the six-month period ending September 30, 2024, were government agencies and public utilities, with whom they maintain long-term PPAs averaging 25 years in duration.
NTPC Green Energy IPO Day 2 LIVE Updates: Check out latest GMP ahead of Day 2 bidding
NTPC Green Energy IPO GMP today is +0.80. This indicates NTPC Green Energy share price was trading at a premium of ₹0.80 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of NTPC Green Energy share price is indicated at ₹108.8 apiece, which is 0.74% higher than the IPO price of ₹108.
According to the evaluation of the last 18 sessions of grey market activities, the present GMP of ₹0.80 is exhibiting a tendency towards a decline. The lowest GMP recorded is ₹0, while the highest is ₹25, as per the insights provided by investorgain experts.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
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