NTPC Green's IPO attracted bids of $1.8 bln, making it the third largest listing in India this year.
NTPC Green Energy (the renewable energy arm of the state-owned NTPC) received bids totaling 154.06 Billion Rupees ($1.83 Billion) for its $1.2 Billion initial public offering on Friday, as investors placed bets on the growing need for clean energy in the country.
India is rushing to meet its clean-energy targets. It has increased investments in renewables and expanded capacity. Moody's ratings says it will need to spend $385bn by 2030 to reach its goals after failing to do so in 2022.
Arun Kejriwal of Kejriwal Research, a brokerage, stated that the IPO was a success. The fact that they achieved 2,41 times the total share subscription is commendable.
Institutional investors received a total of 593.2 millions shares, which was 3.3 times more than the original offer. These bids were made mainly in the last few hours of Friday's trading.
The portion reserved for retail buyers was also oversubscribed by 3,4 times after it had been fully subscribed at the first day's bidding on Tuesday.
NTPC Green's value is $10.8 billion at the top of its price range of 102 to 108 rupees per unit. This year, its IPO is only behind Swiggy and Hyundai Motor India in terms of size.
Prashanth Tase, Senior VP of Research at Mehta Equities said that Indian stock markets, which had hit several record highs in the first half of this year, have cooled down since September. They are now down over 8% on their previous peak, causing near-term concern for the IPO.
According to the draft documents in the filing, the IPO includes only new shares and NTPC does not dilute its stake.
Anchor investors such as the Government of Singapore and Abu Dhabi Investment Authority, along with the New World Fund had also purchased shares worth approximately $469 million before the bid date.
The stock exchanges are expected to open on November 27. $1 = 84.3970 Indian Rupees (Reporting and editing by Manvi Pan in Bengaluru, Savio D’Souza, Janane Venkatraman Abinaya VIjayaraghavan, Krishna Chandra Eluri).
(source: Reuters)
