NTPC Green Energy’s ₹100 billion (~$1.19 billion) initial public offering (IPO) was oversubscribed 2.42 times at the end of the bidding window on November 22, 2024.

The price band was set at ₹102-108 (~$1.21- 1.28) per equity share with a face value of ₹10 (~$0.119). The IPO saw bids for 1.43 billion shares, exceeding the 593.17 million shares on offer.

Retail investors led the demand, with a subscription rate of 3.44, followed by qualified institutional buyers at 3.32 and shareholders at 1.60. The non-institutional investors’ portion was subscribed 0.81 times, and the employees’ portion was 0.80.

The company’s shares were trading at a nil grey market premium.

The shares will likely be listed on the BSE and NSE on November 27, 2024.

The net proceeds will be invested in NTPC Renewable Energy to repay, in whole or part, the company’s outstanding borrowings availed by NREL, amounting to ₹75 billion (~895.78 million). The remaining ₹25 million (~$298.59 million) will be used for general corporate purposes, including funding of strategic initiatives, partnerships, joint ventures and acquisitions, capital expenditure, interest payment, and business development initiatives.

Several clean energy companies have issued IPOs this year. Two leading renewable energy companies—Premier Energies and Waaree Energies—raised about $850 million in their initial public offerings this year.

ACME Solar Holdings’ ₹29 billion (~$344.85 million) IPO was oversubscribed 2.75 times. Solar module manufacturer Alpex Solar’s $8.9 million IPO was oversubscribed 303 times. Other companies that filed DRHPs include Vikram Solar, Solar91 Cleantech, Solarium Green, and Solarworld Energy.

A few clean energy companies took the QIP (qualified institutional placement) route to raise money. Adani Energy Solutions raised equity capital twice this year through QIPs for $1.5 billion. Its second QIP in October received bids 4.2 times the deal size.  JSW Energy raised $600 million in a QIP earlier in the year.

Reports say two other public sector companies, SJVN Green and NLC India’s green energy arm, are also considering raising money from the market in 2025.