NTPC shares surge: Renewable arm plans Rs 10,000 Cr IPO: Rediff Moneynews

NTPC shares rose over 4% after NTPC Green Energy, its renewable energy arm, filed IPO documents to raise Rs 10,000 crore. The IPO will be used to repay loans and fund general corporate purposes.

New Delhi, Sep 19 (PTI) Shares of NTPC surged over 4 per cent to an all-time high on Thursday after renewable energy major NTPC Green Energy filed preliminary documents with capital markets regulator Sebi to raise Rs 10,000 crore through an initial public offering (IPO).

The company’s shares rose 4.34 per cent to Rs 431.85 — its record high — on the BSE.

On the NSE, the stock rose 4.27 per cent to Rs 431.85, an all-time high.

According to the Draft Red Herring Prospectus (DRHP), the initial sale of shares constitutes an entirely new issue of common shares without an Offer for Sale (OFS) element.

The renewable energy company said the issue proceeds of Rs 75 billion will be used to repay or prepay part or all of the outstanding loans of its subsidiary NTPC Renewable Energy Ltd (NREL) and a portion will be used for general corporate purposes.

NTPC Green Energy is a Maharatna-based public sector undertaking with a renewable energy portfolio that includes solar and wind assets.

The lead managers for the issue are IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities and Nuvama Wealth Management.

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