NGEL’s INR 100 billion IPO is priced between INR 102 and INR 108/share
It has reserved 75% of the issue for qualified institutional investors
The proceeds are planned to repay its loans and fund growth opportunities
NTPC Green Energy Limited (NGEL), the green energy arm of India’s state-owned utility NTPC Limited, has finalized its initial public offering (IPO) through which it targets to raise INR 100 billion ($1.2 billion). The company has set price bands and also announced the date it will be launched.
According to the company’s Red Herring Documents (RHD) filed with the Securities and Exchange Board of India (SEBI), NGEL will open its IPO for subscription on November 18, 2024 and close on November 22, 2024. The price band is fixed between INR 102 and INR 108 ($1.21 and $1.28)/share.
The company has reserved up to 75% of the issue for qualified institutional investors, 15% for non-institutional bidders, and the remaining 10% for retail individual bidders.
NGEL plans to use the proceeds to repay the loans of its wholly-owned subsidiary NTPC Renewable Energy Limited (NTPC REL). Some of it will also be used to fund growth opportunities (see NTPC Green Energy Limited Targets INR 100 Billion Through Public Listing).
NGEL’s primary revenue source is from the sale of solar and wind power under power purchase agreements (PPA) to Indian government agencies and public utilities. As of September 30, 2024, its renewable energy portfolio encompasses solar and wind power assets with an operational capacity of 3.22 GW of solar and 100 MW of wind projects across 6 Indian states.