The IPO of NTPC Green Energy, a subsidiary of the country's largest power generating company NTPC, is going to open on 19 November 2024. Interested investors can bid for it till 22 November 2024. Through this, the company intends to raise Rs 10,000 crore. Meanwhile, a lot of interest is being seen among eligible investors under the shareholder quota for the IPO.

Let us tell you that apart from retail, high net worth individuals (HNIs) and employees, the share sale of NTPC Green Energy will also include the reserved shareholder category, which will provide an opportunity to NTPC shareholders to participate in the offering.

NTPC Green Energy Limited has reserved 10 per cent of its upcoming IPO for the existing shareholders of its parent company NTPC. According to the company's red herring prospectus (RHP), “Equity shares with a face value of Rs 10 will be allotted to eligible shareholders on a proportionate basis. This reserved portion will not exceed 10 per cent of the total issue size.”

Shareholders holding NTPC shares as on the date of filing the RHP are eligible to apply under this reserved quota. NTPC Green Energy filed its RHP on November 13 this week. NTPC Green Energy has clarified in its RHP that eligible applicants include individuals and Hindu Undivided Families (HUFs) who are public equity shareholders of NTPC as on the date of RHP.

According to InvestorGain and IPO Watch, NTPC Green Energy IPO GMP is trading at around Rs 2.5 – 3 in the unofficial market, which represents a premium of around 3 per cent.

The price band of this IPO has been fixed at Rs 102-108 per share. Investors will have to bid for a minimum of 138 shares in the IPO and in multiples of 138 thereafter. According to a PTI report, NTPC Green Energy's target is to invest up to Rs 1 lakh crore in solar and wind assets by financial year 2027.

According to Moneycontrol, parent company NTPC has invested Rs 7,500 crore in NTPC Green Energy since inception. The company is seeking a valuation of Rs 1 lakh crore for it.