LIC Gets Nearly 11% Of NTPC Green IPO, Invests Over Rs 1,000 Crore

Wed Nov 27 03:30:00 UTC 2024: ## LIC Secures Major Stake in NTPC Green Energy IPO

**Mumbai, India** – Life Insurance Corporation of India (LIC), the country’s largest life insurer, has secured a significant stake in NTPC Green Energy Limited’s initial public offering (IPO). LIC invested a total of ₹1093.2 crore (approximately $132 million USD), acquiring nearly 11% of the ₹10,000 crore (approximately $1.2 billion USD) IPO. This includes ₹500 crore as an anchor investor, with shares subject to a 30-90 day lock-in period, and an additional ₹593.2 crore invested in the main offering.

The IPO, which closed on November 22nd, was overall subscribed 1.94 times. While the Qualified Institutional Buyers (QIBs) and retail portions were significantly oversubscribed (3.51 times and 3.75 times respectively), the non-institutional investor portion saw less enthusiasm. The employee portion was also undersubscribed.

NTPC Green Energy, a subsidiary of NTPC Ltd., plans to utilize the IPO proceeds primarily to prepay ₹7,500 crore of borrowings and allocate the remaining funds for general corporate purposes. The company reported strong Q2 FY25 financials, with revenue of ₹1,132.74 crore and a profit after tax of ₹175.3 crore.

NTPC Green Energy aims to substantially expand its renewable energy capacity to 19 GW by FY27, aligning with India’s ambitious clean energy goals. This IPO is a key step in NTPC Ltd.’s broader strategy to reach 60 GW of renewable energy capacity by 2032. As of September 2024, NTPC Green Energy operated 3,320 MW of renewable energy projects and has a substantial pipeline of future projects.