India's NTPC Green sets a price range for its $1.2 billion IPO
A newspaper advertisement on Wednesday showed that India's NTPC Green Energy had set a price range of 102 to 108 rupees for its 100 billion-rupee ($1,19 billion) IPO. This is expected to be India's third largest IPO this year.
Bidding for the renewable energy company will begin on November 19 and end on November 22. On November 18, large "anchor investors" will bid.
The IPO of the state-owned power firm NTPC is a sign that India is betting big on renewable energy and ramping up its capacity to meet its 2030 clean-energy target, after failing to reach a highly-publicised target of 2022.
India's IPO industry is booming. However, recent large IPOs, including those from Swiggy and Hyundai Motor India, two of the biggest this year, have received a tepid reaction from investors due to a decline in the stock markets.
The blue-chip Nifty index fell 9% since its record high of Sept. 27, as the market expected and foreign investors withdrew funds.
NTPC Green will sell new shares in the IPO worth 100 billion rupees. But NTPC, the parent company, is not selling any shares.
The company intends to use the proceeds of the IPO in order to invest into its unit NTPC Renewable Energy and repay debt. $1 = 84.3810 Indian Rupees (Reporting and editing by Savio D’Souza in Bengaluru)
(source: Reuters)
