NTPC Green Energy IPO opens today: GMP remains positive; Should you apply?

The subscription window for the NTPC Green Energy IPO opens today, November 19, 2024, and will conclude on Friday, November 22, 2024. Here's what market analysts have to say about the public offering

NTPC Green Energy IPO opens today: The initial public offering (IPO) of NTPC's renewable energy arm, NTPC Green Energy, opens for public subscription today, November 19, 2024. Ahead of the IPO launch, the company announced that it has raised Rs 3,960 crore from anchor investors through bidding concluded on November 18, 2024.

 

The Rs 10,000 crore offering of NTPC Green Energy is a book-built issue comprising a fresh issue of 92.59 crore shares. The IPO is priced in a band of Rs 102-108 per share, with a lot size of 138 shares. Investors can bid for a minimum of 138 shares and in multiples thereof. 

 

Meanwhile, NTPC Green Energy shares are trading at a premium of Rs 0.70 in the grey market, translating to a grey market premium (GMP) of 0.65 per cent over the upper price band, according to sources tracking the unofficial market.

 

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

 

The NTPC Green Energy IPO will remain open for public subscription until Friday, November 22, 2024. The basis of allotment is expected to be finalized on Monday, November 25, 2024, and shares will be credited to investors' demat accounts on Tuesday, November 26, 2024. 

 

NTPC Green Energy shares are tentatively slated for listing on the NSE and BSE on Wednesday, November 27, 2024.  The company intends to use the net proceeds for funding investments in its wholly-owned subsidiary, NTPC Renewable Energy (NREL), to repay or prepay certain outstanding borrowings, and for general corporate purposes.

 

Should you Subscribe to the NTPC Green Energy IPO?

Brokerages such as Reliance Securities, SBI Securities, Mehta Equities, and Swastika Investmart have broadly recommended subscribing to the IPO, citing its strong long-term growth potential.  READ MORE

 

About NTPC Green Energy

NTPC Green Energy, a wholly owned subsidiary of the 'Maharatna' NTPC, is India's leading non-hydro renewable energy public sector company. As of September 30, 2024, the company had an operational capacity of 3,320 MW, including 3,220 MW of solar projects and 100 MW of wind projects spread across six states. The company generates revenue by selling solar and wind power to Indian government agencies and public utilities under Power Purchase Agreements.