NTPC IPO Garners Bids Worth $1.8 billion: Set to be India's Third-Biggest Listing of the Year The Government of Singapore, the New World Fund, the Abu Dhabi Investment Authority (ADIA), and other anchor investors purchased shares worth USD 469 million ahead of the listing.
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State-owned National Thermal Power Corporation's renewable energy arm, NTPC Green Energy has attracted USD 1.8 billion (INR 15,170 crore) worth of bids and is set to be the country's third-biggest listing behind Hyundai Motor India and Swiggy.
Recent conversations around India's energy needs as a rapidly developing country have highlighted its focus on ensuring affordable energy access while advancing its transition to clean energy.
Earlier this year at the India Energy Week 2024, Prime Minister Modi noted the nation's standing as the world's third-largest energy consumer, emphasizing the need for robust infrastructure to meet growing demands. He projected that India's primary energy demand would double by 2045, with initiatives underway to expand refining capacity and integrate natural gas more significantly into the energy mix.
Approximately 75 percent of the 593.2 million shares on offer were reserved for institutional investors, who were recorded to be oversubscribed by 3.3 times. Most bids came during the final trading hours last Friday. Shares set aside for retail investors were oversubscribed by 3.4 times after being fully subscribed on the first day of bidding.
"However, Indian stock markets — which hit multiple record highs earlier this year — have cooled off since September, falling over 8% from its last peak and causing some near-term concerns for the IPO," said Prashanth Tapse, Senior Vice President of Research at Mehta Equities, as reported by Reuters.
The draft papers for the filing also revealed that the IPO will only consist of a fresh issue of shares and will not include an offer for sale (OFS) component. The Government of Singapore, the New World Fund, the Abu Dhabi Investment Authority (ADIA), and other anchor investors purchased shares worth USD 469 million ahead of the listing.
