India's NTPC Green sets price range for USD-1.2bn IPO

Indian state-run energy company NTPC Ltd (BOM:532555) has set a price band of INR 102 (USD 1.21/EUR 1.14) to INR 108 per share for the up to INR-100-billion initial public offering (IPO) of its renewables arm NTPC Green Energy.

The upcoming deal will open for subscriptions on November 19 and is due to be completed on November 22. According to the Red Herring Prospectus filed with the Securities and Exchange Board of India (SEBI) on Wednesday, the bidding for anchor investors is scheduled for November 18.

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The transaction will involve solely the issue of fresh equity shares in NTPC Green Energy and will not include an Offer For Sale (OFS) component. Investors will be able to bid in lots of 138 shares and in multiples of 138 equity shares thereafter. At least 75% of the issue will be reserved for qualified institutional investors, 15% will be set aside for non-institutional investors, and 10% will be allocated to retail investors. The company will also reserve INR 10 billion for existing shareholders.

As announced in September, NTPC Green Energy intends to allocate some of the fresh capital to repay the outstanding debt of its subsidiary NTPC Renewable Energy. Some of the funds will go to cover general corporate needs.

The shares allotted in the IPO are set to commence trading on the stock exchange on November 27.

In September, the Solar Energy Corporation of India (SECI) announced plans for a bourse listing in the next one or two years, while Matrix Gas and Renewables Ltd aims to go public to raise up to INR 12 billion to back its green hydrogen ambitions.

(INR 10 = USD 0.118/EUR 0.112)