NTPC Green Energy IPO: LIC, Goldman, Mutual Funds Like This IPO; How Much PSU Earned From Anchor Investors?

NTPC Green Energy IPO: Subscription for the much-awaited Rs 10,000 crore IPO is open for general investors from November 19, and the bidding will close on November 22. However, ahead of the mainboard IPO, this PSU green energy company bagged a whopping Rs 3,960 crore investment from anchor investors on November 18. Biggies like LIC, Goldman Sachs, Morgan Stanley, and major mutual funds have taken a piece of NTPC Green Energy IPO in the bidding round for anchor investors.

NTPC Green Energy IPO Anchor Investors:

NTPC Green Energy allocated 36,66,66,666 equity shares at Rs 108 per share on Monday, November 18, 2024, to its anchor investors.

Among the domestic institutional investors who participated in the anchor investors round are - Life Insurance Corporation of India, ICICI Prudential Mutual Fund, Nippon Life India Mutual Fund, Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, DSP Mutual Fund, White Oak, Baroda BNP Mutual Fund, Canara Robeco Mutual Fund, Edelweiss Mutual Fund and many others.

In the case of foreign institutional investors, Capital World, Goldman Sachs, GIC, T.Rowe Price, Abu Dhabi Investment Authority, Morgan Stanley, Allianz Global and many others participated.

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

NTPC Green Energy IPO Details:

The IPO is an entirely fresh issue worth Rs 10,000 crore and opened on Tuesday, November 19, 2024. Subscription will close on Monday, November 22, 2024. The price band for the Offer has been determined at Rs 102 - Rs 108 per equity share. The IPO will fetch Rs 10,000 crore at the upper end of the price band. Investors can bid for a minimum of 138 equity shares and in multiples of 138 equity shares thereafter.

The Issue is being made through the book-building process, wherein at least 75% of the net issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the net issue shall be available for allocation to non-institutional investors, and not more than 10% of the net issue shall be available for allocation to retail individual investors.

Additionally, the company has reserved Rs 200 crore worth of shares for its employees. The eligible employees will get these shares at a discount of Rs 5 per share to the final issue price. Further, Rs 1,000 crore worth of shares are reserved for shareholders.

Should You Subscribe For NTPC Green Energy IPO?

As per Chola Securities, at a post-issue market cap of ₹91,000 crore, NTPC Green's valuation stands at ₹3,490 crore per GW of FY30e of expected capacity, offering a 40% discount compared to peers when compared to their expected capacity in FY2030e:

- Tata Power: ₹5,967 crore per GW of FY2030e estimate (Future Capacity by FY30e: 21.7GW)

- JSW Energy: ₹6,659 crore per GW of FY2030e estimate (Future Capacity by FY30e: 19.2 GW).

Despite its aggressive expansion pipeline, NTPC Green's per-GW valuation significantly trails its peers, offering substantial upside potential for investors. Adding the brokerage said, "We have a 'SUBSCRIBE' rating for NTPC Green Energy Ltd's IPO."

NTPC Group aims to expand its non-fossil-based capacity to 45-50% of the portfolio by 2032, including achieving 60 GW of renewable capacity.