NTPC Green IPO Subscription Status Day 3 :The IPO of NTPC Green Energy, a government company in the renewable energy sector, has received better response from investors on the third day i.e. on 22 November. This IPO has been subscribed 237 percent or 2.27 times by 3:45 pm on its third day. But there was no improvement in its gray market premium and it remained only 1 percent. This IPO is closing for subscription today. Shares will be allotted on 25th November and the stock will be listed on 27th November. The size of the IPO is Rs 10,000 crore. This government company is a subsidiary of already listed PSU NTPC.
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How is the subscription status?
NTPC Green Energy’s IPO has been subscribed 235 percent or 2.37 times till 3:40 pm on the third day. About 75 percent of the public issue of this company is reserved for qualified institutional buyers and this portion is filled 332 percent or 3.32 times. 15 percent of the IPO is reserved for non-institution investors and so far it has been filled 0.78 times or 78 percent. In this, 10 percent share is reserved for retail investors and till now it has been filled 3.26 times or 326 percent. Shares worth Rs 200 crore have been reserved for the employees. Eligible employees will also get a discount of Rs 5 on each share in the purchase of shares. The reserve portion for these is filled 75 percent or 0.75 times.
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NTPC Green Energy GMP
Government company NTPC Green Energy does not have much craze in the gray market. It is available at a premium of Re 1 in the gray market. In this regard, there are indications of listing of the share at Rs 109 as against the IPO price of Rs 108. NTPC Green Energy IPO: The size of the IPO of the renewable energy sector company is Rs 10,000 crore. There will be no Offer for Sale (OFS) in this. Retail investors will have to bid for at least 138 shares.
The proceeds from NTPC Green IPO will be used for loan repayment and other general corporate purposes. Some of the amount will be used for investment in its wholly owned subsidiary NTPC Renewable Energy.
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Company growth strategy
• The company continues to expand its project pipeline through prudent bidding and strategic joint ventures with PSUs and private corporates.
• The company’s focus is on projects in new energy solutions like green hydrogen, green chemicals and battery energy storage systems (BESS).
• Continuous reduction in efficiency and cost of project execution and operation and maintenance.
• Continues to contribute to India’s sustainability efforts.
• Strong product portfolio with diversification across different geographies and off-takers
• Experience in renewable energy project execution.
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What is the business of the company?
NTPC Green Energy is the largest public sector renewable energy undertaking (except hydro) in terms of operational capacity till June 2024 and power generation in FY 2024. NTPC Green’s portfolio comprised 14,696 MW, which included operational projects of 2,925 MW and contracted and awarded projects of 11,771 MW. The company’s renewable energy portfolio includes solar and wind energy assets located at multiple locations in more than 6 states, which helps reduce the risk of location-specific output variability.
NTPC Green Energy’s revenue from operations has grown at a CAGR of 46.82% from Rs 910.42 crore in FY2022 to Rs 1,962.6 crore in FY2024. The company’s net profit grew at a CAGR of 90.75% from Rs 94.74 crore in FY22 to Rs 344.72 crore in FY24.
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