NTPC Green Energy IPO Update: Holding 1 NTPC share may give one up to bidders; but experts advise caution

NTPC Green Energy IPO Update: If the company achieves the set targets, it could become one of India's largest renewable energy producers. Wall Street is currently excited about renewable energy, as evidenced by Premier Energy's IPO earlier this month, but experts point out that NTPC Green's track record in project delivery has not been stellar.

NTPC Green Energy IPO Update

NTPC Green Energy Ltd, the green energy arm of state-run NTPC, is planning to raise Rs 10,000 crore through an initial public offering (IPO). The company has filed its draft red herring prospectus (DRHP) for this purpose, and unlike many other IPOs, this one will be a completely fresh issue without any offer-for-sale (OFS) component. The proceeds from the IPO will be used to repay the company's debt and for general corporate purposes.

If you're a retail investor and already hold NTPC Ltd shares, you could benefit even more when the IPO opens for bidding. Retail investors are generally allowed to invest up to Rs 2 lakh in an IPO. However, if you're an NTPC shareholder, you can also bid under the shareholder category, doubling your limit to Rs 4 lakh. 

NTPC Green Energy's employees who also hold shares in its parent company can benefit even more. They can place bids under the shareholder, eligible employee, and retail categories, bringing their total investment limit up to Rs 6 lakh. But, to take advantage of this, you need to be a shareholder of NTPC before its green energy arm files its draft papers with SEBI.

The IPO will be managed by a team of lead managers, including IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management.

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According to Kranthi Bathini, director of equity strategy at WealthMills Securities, NTPC Green’s IPO could attract significant interest from investors, especially since green energy is a hot topic. This move by NTPC also reflects its intent to diversify its earnings by expanding into different energy sectors.

India's IPO scene has been quite active this year, with around 235 companies raising over Rs 71,000 crore so far.

Meanwhile, NTPC shares jumped 4.35 percent today to hit a record high of Rs 431.85. The stock eventually settled 2.45 percent higher at Rs 424.

 

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