NTPC Green Energy IPO Day 1: Check latest subscription, GMP

The initial public offering (IPO) of NTPC Green Energy saw moderate interest from investors despite the markets witnessing a brief rally on Tuesday as the public offering was booked just 36% on the first day.
NTPC Green Energy IPO saw an overall subscription of 0.36 times. The retail investors’ portion was subscribed 1.46 times, indicating robust interest from small investors. However, the Qualified Institutional Buyers (QIB) category recorded zero subscriptions, while the Non-Institutional Investors (NII) segment attracted a 0.17 times subscription.
The initial public offering (IPO) of NTPC Green Energy Limited opened for bidding on Tuesday looking to raise Rs 10,000 crore through a fresh issue entirely of 92.59 crore shares.
The initial public offering (IPO) will make NTPC Green Energy the third-largest IPO of the year, following Hyundai Motors India’s Rs 28,756 crore IPO and Swiggy’s Rs 11,327 crore issue.
The NTPC Green Energy IPO will close for subscription on November 22, 2024. The price band for the NTPC Green Energy IPO has been set between Rs 102 and Rs 108 per share. Retail investors can participate with a minimum application size of 138 shares, amounting to Rs 14,904.
NTPC Green Energy Limited is a wholly owned subsidiary of NTPC Limited. It is the largest renewable energy public sector enterprise. Its renewable energy portfolio encompasses both solar and wind power assets with a presence across multiple locations in more than six states, said an IPO report from Swastika.
Swastika Investmart Ltd said, “The IPO is recommended for long-term investors only.” It gave NTPC Green Energy IPO a ‘SUBSCRIBE (FOR LONG TERM)’ rating.
An IPO report from Baja Broking also recommended subscribing for ‘Long Term’.
“As Supported by NTPC’s financial strength and ambitious renewable energy targets, the company is well-equipped to capitalize on the increasing demand for sustainable energy solutions. Hence, looking at attributes we recommend only risk taking investors to “SUBSCRIBE” the NTPC Green Energy Ltd IPO for long term perspective only,” said Rajan Shinde, Research Analyst, Mehta Equities Ltd.
“In terms of valuation, the IPO is priced aggressively at a P/E ratio of 264x as of FY 2024, which is significantly higher than its peers. The aggressive valuation suggests that the IPO may be suited for only investors with a high-risk appetite and investing for long term (3-5 yrs), GMP indicates minimal listing gains,” said an IPO report from Lemonn.
The grey market premium (GMP) for NTPC Green Energy IPO saw a marginal rise after having diped below Rs 1.
The current GMP is Rs 1.15, suggesting a potential listing gain of approximately 1.06% over the higher end of the price band. This is a dip from its GMP of Rs 11 reported a few days ago, reflecting some cooling in investor sentiment ahead of the listing.
The allotment is expected to be finalised by November 25, 2024, and the stock is expected to list on the BSE and NSE on November 27, 2024.
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