New Delhi: NTPC Limited's subsidiary company- NTPC Green Energy Limited's Rs 10,000 crore IPO may soon hit the primary market. For this, the company has received the necessary approval from market regulator SEBI.

There will be no offer for sale in this IPO. This means that the company will issue fresh equity shares in the IPO and the entire money of the IPO will be spent in taking the company forward.

Shareholders quota will also remain

NTPC Green Energy Limited filed its IPO documents with SEBI on September 18, 2024. Its IPO also has a quota for eligible employees. They will also get shares at a discount.

There will also be a shareholders quota in this IPO. This means that those who have shares of the parent company NTPC till the date of RHP will be able to apply in the IPO through the shareholders quota. You can also apply through shareholders quota by buying one share of NTPC. This can increase the chances of getting an IPO allotted.

when will the ipo open

No official date has been announced for the IPO of NTPC Green Energy Limited yet. But, this much-awaited IPO is expected to be launched this month.

NTPC Green Energy Limited has not yet disclosed the price band for the IPO. The price band information may be given along with the IPO subscription date or sometime thereafter.

What is the expert's opinion

Market analysts are quite bullish on NTPC Green Energy IPO. ICICI Securities has given a 'buy' rating to NTPC shares. Regarding NTPC Green Energy Limited (NGEL), ICICI Securities says that it will have great growth potential. It has also described the valuation metric of NTPC Green Energy as good. At the same time, its target price on NTPC is Rs 495.

Kranti Bathini, Director, Equity Strategy, Wealthmills Securities, said, "The IPO is coming at a time when thermal power sector giant NTPC is looking for other energy sources to diversify its business and increase revenue. There will be more focus on green energy in the near future, so investors will obviously want to invest in it."

Use of IPO funds

The Rs 7,500 crore IPO proceeds will be used to invest in NTPC Renewable Energy Limited (NREL). Its borrowings will be reduced and the money will also be spent for general corporate work.

As of June 30, 2024, NTPC Green's "portfolio" comprised 14,696 MW. This included operational projects of 2,925 MW and contracted and awarded projects of 11,771 MW. Additionally, it has "capacity under pipeline" of 10,975 MW, which together with its portfolio is 25,671 MW.

IDBI Capital Markets & Securities Limited, HDFC Bank Limited, IIFL Securities Limited and Nuvama Wealth Management Limited are the book-running lead managers to the issue and KFin Technologies Limited is the registrar to the offer.