NTPC Green Energy’s IPO Launch
The much-anticipated public issue of NTPC Green Energy is set to open for subscription on November 19 and will close on November 22. This state-owned green energy company has set the IPO price range between Rs 102-108 per share, with a minimum purchase lot size of 138 shares.
IPO Details
NTPC Green Energy is offering fresh equities worth Rs 10,000 crore, totaling approximately 92.59 crore shares. Of these, 75% are allocated for Qualified Institutional Buyers, 15% for High Net-Worth Individuals, and 10% for retail buyers. The proceeds, amounting to Rs 7,500 crore, will be used for investments in NTPC Renewable Energy (NREL) for repayment, capital expenditure, and other corporate purposes.
Company Profile and Future Plans
Promoted by NTPC, NTPC Green Energy is a major player in the renewable energy sector, excluding hydro, with a portfolio of 14,696 MWs as of June 30, 2024. This includes 2,925 MWs of operating projects and 11,771 MWs of contracted and awarded projects. Additionally, there is 10,975 MWs of capacity in the pipeline, totaling 25,671 MWs.
The company plans to commission 14 GW of pumped hydro-capacity over the next 6-9 years, compared to the current 3.3 GW. With 5.9 GW under construction and 10.8 GW in the pipeline, NTPC Green Energy aims to reach 60 GW of renewable capacity by 2032.
Regulatory Approval
In late October, NTPC Green Energy received approval from the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The company had filed its IPO papers on September 18, taking advantage of India’s thriving stock market.
Doubts Revealed
NTPC Green Energy -: NTPC Green Energy is a company in India that focuses on producing energy from renewable sources like wind and solar power. It is part of NTPC Limited, which is a large government-owned company that generates electricity.
IPO -: IPO stands for Initial Public Offering. It is when a company sells its shares to the public for the first time to raise money for its business.
Shares -: Shares are like small pieces of a company that people can buy. When you own a share, you own a part of that company and can earn money if the company does well.
Institutional buyers -: Institutional buyers are big organizations like banks or mutual funds that buy a lot of shares at once. They usually have more money to invest than regular people.
High net-worth individuals -: High net-worth individuals are people who have a lot of money to invest. They can buy more shares than regular people because they have more money.
Retail buyers -: Retail buyers are regular people like you and me who buy shares in smaller amounts. They are not big organizations or very rich individuals.
SEBI -: SEBI stands for Securities and Exchange Board of India. It is a government agency that makes sure the stock market in India is fair and safe for everyone.
Renewable Energy -: Renewable energy comes from natural sources that can be replenished, like sunlight, wind, and water. It is better for the environment because it doesn’t run out and doesn’t pollute the air.
60 GW -: GW stands for gigawatt, which is a unit of power. 60 GW is a very large amount of energy, enough to power millions of homes.
