NTPC Green Energy IPO listing tomorrow: Here's what investors can expect

NTPC Green Energy IPO listing prediction: Shares of state-owned NTPC’s renewable energy arm, NTPC Green Energy, are expected to make their debut on the bourses tomorrow, Wednesday, November 27, 2024. Market analysts remain optimistic on the long-term outlook but expect a muted listing gain for the company's shares. 

 

The public offering, which ended for subscription on November 22, 2024, garnered a decent response from investors, with the issue getting oversubscribed by 2.42 times, according to data from the National Stock Exchange (NSE).

 

Meanwhile, the unlisted shares of NTPC Green Energy were quoted at a premium of Rs 2 over the upper end of the IPO price of Rs 108, which the company has also set as the allotment price, sources tracking grey market activities revealed. Based on the current Grey Market Premium (GMP), NTPC Green Energy shares are expected to list around Rs 110 apiece, yielding a return of 1.85 per cent for its investors.  That said, here's what analysts expect from the NTPC Green Energy IPO listing, and what they recommend: 

Its current GMP, according to Shivani Nyati, head of wealth at Swastika Investmart, indicates expectations of a modest listing gain. She further added that the company boasts a robust and diversified portfolio across geographies and offtakers, which is a key strength.  While its revenue growth trajectory has been consistent, she believes temporary fluctuations in profitability and margins remain a concern.  The IPO's valuation, based on the PE ratio, Nyati said, appears aggressive, which may limit immediate upside potential.

 

Despite the sell-off mood in the market and expensive valuations, Prashanth Tapse, senior VP (Research) at Mehta Equities, said NTPC Green Energy received decent demand from NII and retail investors, while NII stayed back with low interest. With ambitious renewable energy targets, Tapse believes, the company is well-equipped to capitalise on the increasing demand for sustainable energy solutions. NTPC Green's strategic expansion into green hydrogen, green chemicals, and battery storage further enhances its growth prospects, positioning it at the forefront of India’s energy transition.

 

Considering all the parameters along with decent subscription demand and market sentiments, he believes the stock can list with a neutral to flat gain in the 0-5 per cent range over its issue price. "Allotted investors should not expect any big listing gains due to the current market scenario," he said. "Long-term investors should consider holding the company despite short-term volatility in the markets and competitive pressures in the sector." 

 

For non-allotted investors, Tapse advised accumulating shares if the listing is around the issue price.

 

NTPC Green Energy IPO details

NTPC Green Energy IPO comprises a fresh issue of 925,925,926 shares. It was available at a price band of Rs 102-108 per share, with a lot size of 138 shares. The IPO received the highest demand from Retail Individual Investors (RIIs), who subscribed to 3.44 times the quota reserved for them. This was followed by Qualified Institutional Buyers (QIBs), who bid for 3.32 times their allocated quota, and Non-Institutional Investors (NIIs), who subscribed to 0.81 times. Meanwhile, the portions reserved for employees and shareholders received subscriptions of 0.80 times and 1.60 times, respectively. 

About NTPC Green Energy 

NTPC Green Energy (NGEL) is the renewable energy arm of NTPC's green business initiatives, which undertakes projects through both organic and inorganic routes and aims to drive NTPC's green energy transition, with a target of achieving 60 GW of renewable energy capacity by FY32.