NTPC Green Energy IPO Opens Today: Strong Retail Demand

NTPC Green Energy IPO Opens Today: Strong Retail Demand  NTPC Green Energy Ltd. is launching its initial public offering (IPO) on Tuesday, November 19th, 2024. The company plans to raise Rs 10,000 crore through this IPO, making it the third-largest IPO in India this year.

Key details of the IPO:

• Price band: Rs 102 – Rs 108 per share
• Issue opens: November 19th, 2024
• Issue closes: November 21st, 2024
• Market capitalization at upper price band: Rs 91,000 crore

Use of proceeds:

• 75% of the proceeds will be used to repay debt.
• 25% of the proceeds will be used for general corporate purposes.

NTPC Green Energy IPO GMP:

As of November 19th, 2024, the grey market premium (GMP) for the NTPC Green Energy IPO is Rs 0.70. This indicates an estimated listing price of Rs 108.70, which is a 0.65% premium over the upper price band.

Important to note:

• GMP is speculative and not backed by exchanges.
• Investors should conduct their own research before investing in the IPO.

About NTPC Green Energy:

• Wholly-owned subsidiary of NTPC Ltd.
• Renewable energy portfolio of 25.67 GW.
• Plans to expand its portfolio and develop green hydrogen projects.

Risks:

• Reliance on key customers.
• Volatility in raw material prices.
• Project execution risks.
• Concentration of projects in Rajasthan.

NTPC Green IPO Sees Strong Retail Demand

NTPC Green Energy IPO Opens Today: Strong Retail Demand

• Strong Retail Participation: On the first day (November 19th), retail investors subscribed to 50% of their allocated shares, representing 12% of the total offering.
• Overall Subscription: The overall subscription rate on day 1 was 12%, with over 7 crore shares subscribed against the offered 59.3 crore.

• Subscription Details:
  • Retail Investors (RIIs): Subscribed to 4.3 crore shares (50% of their allocation).
  • Non-Institutional Investors (NIIs): Subscribed to 56.2 lakh shares (against their 12.9 crore allocation).
  • Qualified Institutional Buyers (QIBs): No subscriptions yet.

• IPO Details:
  • Book built issue to raise Rs 10,000 crore.
  • Fresh issue of 92.6 crore shares.
  • Price band: Rs 102 – Rs 108 per share.
  • Minimum lot size for retail investors: 138 shares (Rs 14,904 investment).
  • Closes on November 22nd.
  • Tentative listing date: November 27th on BSE and NSE.

• IPO Proceeds:
  • Primarily for debt repayment in subsidiary NTPC Renewable Energy Ltd.
  • Part for general corporate purposes.

Additional Notes:

• The IPO raised Rs 3,960 crore via anchor book on November 18th.
• NTPC Green Energy is a wholly-owned subsidiary of NTPC Ltd., focusing on renewable energy.

NTPC Green IPO Opens for Subscription

NTPC Green Energy IPO Opens Today: Strong Retail Demand NTPC Green Energy’s IPO opened for subscription on November 19th, aiming to raise Rs 10,000 crore. It’s the third-largest IPO of 2024, following Hyundai Motors India and Swiggy.

Key Points:

• Price Band: Rs 102 – Rs 108 per share
• Closing Date: November 22nd
• Allotment: Expected on November 25th
• Listing Date: November 27th on BSE and NSE

Should You Subscribe?

Experts have mixed opinions:

• Long-term investors: Some recommend subscribing, citing NTPC’s strong financial backing and the growing demand for renewable energy.
• High-risk investors: Others caution about the aggressive valuation and suggest it’s suitable only for those with a high-risk tolerance and a long-term perspective.

Current GMP:

The grey market premium (GMP) has decreased to Rs 0.70, indicating a potential listing gain of around 0.65%.

Remember:

• Conduct thorough research before investing.
• Consider your risk tolerance and investment horizon.
• Consult with a financial advisor if needed.