NTPC Shares Rise as NTPC Green Energy IPO Opens for Subscription: NTPC, a state-run electricity powerhouse, rose 2.8% to Rs 376.90 on the BSE as its unit NTPC Green Energy began public issues today and announced an IPO. The IPO will close on November 22, attracting bids for Rs 3,960 crore from anchor investors who got 36.67 crore equity shares at Rs 108 a share.
Global institutional investors like Capital World, Goldman Sachs, GIC, and Morgan Stanley have invested in the anchor allotment of the organization itself along with other domestic investors like Life Insurance Corporation of India and ICICI Prudential Mutual Fund.
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The IPO proceeds will be utilized in the manner to extend funds to the subsidiary, NTPC Green Energy Limited, a 100% subsidiary that in turn invests in NTPC Renewable Energy Limited, repay or prepay interest-bearing borrowings, including overseas borrowings of the company, and any other corporate purpose.
NTPC Green Energy Ltd. is one of the largest companies in India in the renewable energy field and the largest non-hydroelectric public utility in the nation, considering both installed capacities and generation. It has about six states of the renewable energy scale of operations in the wind and solar direction, which minimize the risks connected to generation fluctuation in specific locations.
The company’s grey market premium (GMP) has been registering a slight up-move in the unlisted space and currently stands at Rs 1 state, which is 0.9% better than the issue price.
The share allotment of the company is expected to be done by November 25, and the new shares will be listed on November 27. However, the stock of NTPC declined by 1.56% to Rs 366.70 on Monday from the improvement in the NTPC Green Energy IPO news.
