NTPC Green Energy IPO: Issue sails through on final day; GMP turns flat

The highest demand for the NTPC Green Energy IPO came from retail investors, who oversubscribed their reserved category by 2.54 times, followed by QIBs at 0.75 times and NIIs at 0.38 times, as per NSE

NTPC Green Energy IPO subscription status: Retail investors continue to drive the demand for the initial public offering (IPO) of NTPC Green Energy, the renewable energy arm of state power generation company NTPC. The public offering, which opened for subscription on Tuesday, November 19, 2024, has received bids for 1,40,66,14,542 shares against the 59,31,67,575 shares offered, resulting in an oversubscription of 2.37 times.

 

The surge in demand is attributed to Qualified Institutional Buyers (QIBs), who have oversubscribed the category reserved for them by 3.32 times, according to data available on the National Stock Exchange (NSE). This was followed by retail investors at 3.27 times and Non-Institutional Investors (NIIs) at 0.79 times. Meanwhile, the employee and shareholder quotas have been subscribed 0.75 times and 1.51 times, respectively, as of around 03:42 PM on Friday, November 22, 2024.

 

Meanwhile, the unlisted shares of NTPC Green Energy were trading flat in the grey market on the final day of its IPO bidding, according to sources tracking the unofficial market. The NTPC Green Energy IPO's grey market premium (GMP) has notably fallen from Rs 0.80 quoted on November 19, when it opened for public subscription.

 

The IPO has received broadly positive reviews from brokerages, including Reliance Securities, SBI Securities, Mehta Equities, and Swastika Investmart, all of which have recommended subscribing to the offering. Market analysts cited the company's strong long-term growth potential as the main reason for their views. READ MORE

 

The subscription window for the NTPC Green Energy IPO is set to close today. Following this, the basis of allotment is expected to be finalised on Monday, November 25, 2024. Successful allottees are expected to receive shares in their demat accounts by Tuesday, November 26, 2024.

 

The NTPC Green Energy IPO consists of an entirely fresh issue of 925,925,926 shares, available at a price band of Rs 102-108, with a lot size of 138. Accordingly, investors can bid for a minimum of 138 shares and in multiples thereof. A retail investor would need a minimum of Rs 14,904 to bid for one lot of 138 shares of the NTPC Green Energy IPO. Therefore, for a maximum bid of under Rs 200,000, a retail investor can bid for 1,794 shares, or 13 lots in this IPO.

 

NTPC Green Energy shares are tentatively set to list on the BSE and NSE on Wednesday, November 27, 2024.

 

The company proposes to utilise the net proceeds for investments in its wholly-owned subsidiary, NTPC Renewable Energy (NREL), to repay or prepay certain outstanding borrowings, and for general corporate purposes.

 

KFin Technologies is the registrar for the NTPC Green Energy IPO, while IDBI Capital Market Services, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the book-running lead managers for the public issue.