NTPC Green IPO crosses halfway mark on Day 2: GMP stays green; Subscribe?

NTPC Green Energy IPO has seen the highest demand from retail investors, with their reserved portion oversubscribed by 1.99 times

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NTPC Green Energy IPO subscription status: The initial public offering (IPO) of NTPC Green Energy, the renewable energy arm of state-owned NTPC, opened for subscription on Tuesday, November 19, 2024, and has received a decent response from investors.

 

According to data from the National Stock Exchange (NSE), the NTPC Green IPO had garnered an overall subscription of 0.50 times by 11:48 AM on Thursday. The public offering has seen the highest demand from retail investors, with their reserved portion oversubscribed by 1.99 times, indicating strong interest from individual investors. This was followed by Non-Institutional Investors (NII), whose segment was subscribed 0.25 times.

 

However, Qualified Institutional Buyers (QIBs) recorded the lowest participation so far, bidding for only 29,37,330 shares out of the 25.88 crore shares reserved for this category. The employee and shareholder quotas have been subscribed 0.31 times and 0.83 times, respectively.  Meanwhile, NTPC Green Energy shares are trading at a premium of Rs 0.40 in the grey market, translating to a grey market premium (GMP) of 0.37 per cent over the upper price band, according to sources tracking the unofficial market.

 

The Rs 10,000 crore NTPC Green Energy IPO is a book-built issue, comprising a fresh issue of 925,925,926 shares.

 

The IPO will close for public subscription on Friday, November 22, 2024. Following that, the basis of allotment is expected to be finalised on Monday, November 25, 2024. Successful allottees are likely to receive shares in their demat accounts by Tuesday, November 26, 2024.

 

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

 

Should you subscribe to the NTPC Green Energy IPO?

 

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. They cited the company's strong long-term growth potential as the main reason for their endorsement. READ MORE

 

In its red herring prospectus (RHP), NTPC Green Energy has stated that it intends to use 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 IPO, while IDBI Capital Market Services, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the book-running lead managers.