NTPC Green Energy shares hit 10% upper circuit limit after mild listing
Notable because
The listing of NTPC Green is a welcome addition to recent pure play green issuances, including IREDA and Ola Electric. About three-fourths of the proceeds from the INR 10,000 crore issuance is bookmarked for the repayment / prepayment of borrowings by an NTPC Green subsidiary. The balance one-fourth of the proceeds has been allocated for general corporate purposes, which may include investment in new capacity.
What to look out for in the months ahead
Raising capital through an initial public offering (IPO) can be an effective way for RE developers to raise capital. The bulk of the capital raised by NTPC Green through the recent listing is for the repayment / prepayment of borrowings. Will it consider a follow-on offer in the months ahead to raise additional capital for new capacity addition?
Will this prompt more companies to tap equity markets?