The ₹10,000-crore initial public offering of NTPC Green Energy closes subscribed 2.42 times on the last day of issue closing on Friday. The IPO that came out with a price band of ₹102-108 received bids for 143.37 crore shares against 59.32 crore shares on offer.
The retail investors’ portion was subscribed 3.44 times.
The company has also reserved ₹200 crore worth shares for its employees and ₹1,000 crore (or 10 per cent of the issue size) for NTPC shareholders. Employees will get these shares at a discount of ₹5 a share from the final issue price.
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NGEL is the renewable energy arm of India’s largest power generator, NTPC. The IPO received bids for 54.96 crore shares against 59.32 crore shares on offer, per the NSE.
The portion for retail investors was subscribed 3.32 times, while the category for non-institutional investors (NIIs) remained undersubscribed at 0.81 time. Employees’ portion also remained undersubscribed at 0.80 times, while the shareholders’ quota was fully subscribed by 1.60 times..
Net proceeds
On Monday, NGEL raised ₹3,960 crore from anchor investors, with State-run corporation LIC being the biggest investor, contributing ₹500 crore.
NTPC Green Energy will utilise ₹7,500 crore from the net issue proceeds to repay debt of its subsidiary NTPC Renewable Energy. Additionally, the funds will help the company repay or prepay outstanding borrowings and meet general corporate purposes.