NTPC Green Energy IPO Anchor Allocation at 39.60%

NTPC Green Energy IPO saw a significant anchor allocation response, with 39.56% of the total IPO size subscribed by anchor investors. Out of 926,824,883 shares on offer, anchors picked up 366,666,666 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 18th November 2024, just ahead of the IPO opening on 19th November 2024.

The book-built issue of ₹10,000.00 crores is entirely a fresh issue of 925,925,926 shares. The price band is set at ₹102 to ₹108 per share, with a face value of ₹10 per share. This includes a share premium of ₹98 per share at the upper end of the price band. The issue includes a reservation of up to 19,417,476 shares for employees offered at a discount of ₹5 to the issue price.

The anchor allocation process, which took place on 18th November 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹108 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the IPO looks as follows:

Notably, the shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. The QIB quota has been adjusted to ensure that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For NTPC Green Energy IPO, the lock-in details are as follows: 

• Lock-in Period (50% Shares): 25th December 2024 
• Lock-in Period (Remaining Shares): 23rd February 2025

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Anchor Investors in NTPC Green Energy IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 18th November 2024, NTPC Green Energy IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 366,666,666 shares were allotted to 107 anchor investors. The allocation was done at the upper IPO price band of ₹108 per share, resulting in an overall anchor allocation of ₹3,960.00 crore. The anchors have already absorbed 39.56% of the total issue size of ₹10,000.00 crore, indicating strong institutional demand.

Out of the total allocation of 366,666,666 Equity Shares to the Anchor Investors, 145,370,832 Equity Shares (i.e., 39.65% of the total allocation) were allocated to 16 domestic mutual funds through 72 schemes.

Key IPO Details:

• IPO Size: ₹10,000.00 crores 
• Shares Allocated to Anchors: 366,666,666 
• Anchor Subscription Percentage: 39.56% 
• Listing Date: November 27, 2024 
• IPO Opening Date: November 19, 2024

About NTPC Green Energy Limited and How to Apply for NTPC Green Energy IPO

Incorporated in April 2022, NTPC Green Energy Limited is a wholly-owned subsidiary of NTPC Limited. NTPC Green is a renewable energy company that focuses on undertaking projects through organic and inorganic routes. As of 31st August 2024, the company had an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects across six states. As of 30th June 2024, the company's Portfolio consisted of 14,696 MW, including 2,925 MW of operating projects and 11,771 MW of contracted and awarded projects. As of 30th June 2024, the company had 15 off-takers across 37 solar projects and 9 wind projects. The company is constructing 31 renewable energy projects in 7 states, totaling 11,771 MW. As of 30th June 2024, the workforce comprised 234 employees, and the company utilised the services of 45 contract labourers.