NTPC Green Energy IPO: Renewable energy firm raises ₹3,960 crore via anchor investors ahead of public issue

The State-owned renewable energy giant on Monday raised around ₹3,960 crore from investors in its anchor round, according to an exchange filing, ahead of the company's proposed initial public offering (IPO).

As per the exchange filing, the company has allocated 36,66,66,666 or 36.66 crore equity shares to the anchor investors at an allocation price of ₹108 per share to 107 anchor investors (including mutual funds) at a face value of ₹10 per share. 

The investor pool for the NTPC Green Energy IPO includes New World Fund, Goldman Sachs India, Government of Singapore, Life Insurance Corporation of India, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Kotak Mutual Fund, Abu Dhabi Investment Authority, and SBI Life Insurance. These were, among others, to invest in the public issue.

As per the exchange data filing, Life Insurance Corporation of India at 12.63 per cent, New World Fund at 5.29 per cent, Goldman Sachs India at 5.70 per cent, Government of Singapore at 5.31 per cent, we're the top anchor investors in the issue. 

The renewable energy firm also said that 39.65 per cent allocation to the anchor investors was allocated to 16 domestic mutual funds through a total of 72 schemes, according to the exchange filing.

About NTPC Green Energy IPO

NTPC Green Energy Limited is a wholly-owned subsidiary of NTPC Ltd, the government-owned power generating company. The renewable energy generation firm specialises in completing projects using both organic and inorganic methods.

The company plans to use the proceeds from the public issue to invest in its wholly-owned subsidiary, NTPC Renewable Energy Limited (NREL). NTPC Green Energy also plans to repay or prepay certain outstanding borrowings in full or in part and use the remaining for general corporate purposes. 

The company has set the price band of the IPO at the range of ₹102 to ₹108 per equity share with a face value of ₹10 per share. 

The grey market premium (GMP) for the public issue is ₹0.70 per share, as of November 18. With the shares at the upper price band of the IPO, the issue is expected to be listed at ₹108.7 per share, a premium of 0.65 per cent, according to Investorgain.com.

Grey Market Premium (GMP) shows investors' willingness to pay more for a public issue. However, the GMP for NTPC Green Energy has dropped significantly in the last few days. The IPO is expected to make its BSE and NSE debut on Wednesday, November 27.