NTPC Green allots shares worth Rs 3,960 crore to anchor investors

The initial public offering (IPO) of NTPC Green was subscribed 33 per cent on Tuesday, the first day of the issue. The high net worth individual (HNI) portion was subscribed to 15 per cent, the retail investor portion was subscribed 1.3 times, the employee portion was subscribed to 17 per cent, and the shareholder portion was 57 per cent.

 

The company on Monday had allotted shares worth Rs 3,960 crore to anchor investors. The renewable energy public sector enterprise allotted shares at  Rs 108 per piece.

 

Among those who got an allotment in the anchor category were Goldman Sachs, the Government of Singapore, the Monetary Authority of Singapore, the Life Insurance Corporation of India, and ICICI Prudential, among others.

 

Anchor allotment is made to marquee investors a day before the IPO to instil confidence and provide cues to other investors.

 

The company has priced its IPO between Rs 102 to Rs 108 per share. The IPO is a fresh issue worth Rs 10,000 crore. The company plans to use most of the proceeds of the issue to repay the debts of its subsidiary NTPC Renewable Energy.

 

The IPO comes when relentless foreign portfolio investor selling and disappointment over earnings have led to a sell-off in equity markets and pushed the benchmark indices into the “correction” territory.