Shares of NTPC Green Energy are set to make Dalal Street debut later today, that is, on Wednesday, November 27. The stock is headed for a soft landing at the bourses, if one goes by the latest signals from the unofficial market. The grey market premium (GMP) for NPTC Green Energy has seen a correction lately.
Before its debut, shares of NTPC Green Energy were commanding a premium of Rs 1-2 in the unofficial market, suggesting a flat listing for the investors with negligible listing gains of around 2 per cent, over the issue price. However, the GMP stood around Rs 3-4 before the allotment was announced earlier this week.
The IPO of NTPC Green Energy indicates modest listing gain. The company boasts a robust and diversified portfolio across geographies and off-takers, which is a key strength. While its revenue growth trajectory has been consistent, temporary fluctuations in profitability and margins remain a concern, said Shivani Nyati, Head of Wealth at Swastika Investmart.
"The IPO's valuation, based on the PE ratio, appears aggressive, which may limit immediate upside potential. Given the long-term growth prospects in the renewable energy sector and NTPC Green's strategic position, this IPO was recommended for long-term investors. Short-term traders should remain cautious due to modest GMP signals and potential valuation concerns," she said.
The IPO of Delhi-based NTPC Green Energy was open for bidding between November 19 and November 22. It had offered its shares in the price band of Rs 102-108 per share with a lot size of 138 shares. The company raised a total of Rs 10,000 crore via IPO, which was entirely a fresh share sale of up to 92,59,25,926 equity shares.
The issue was overall subscribed merely 2.42 times. The allocation for the qualified institutional bidders (QIBs) was subscribed 3.32 times The portion allocated for retail investors was subscribed 3.44 times. Allocations for retail and employees were booked 3.44 times and 0.80 per cent, respectively. However, the portion for non-institutional investors (NIIs) remained undersubscribed with 81 per cent bids.
NTPC Green Energy is indicating moderate investor interest, said Manish Chowdhury, Head of Research at StoxBox. "Given its strategic development and strong financial growth, the company is well-positioned to capitalize on growth opportunities in the renewable energy sector. We suggest investors to consider maintaining their positions with a medium to long-term outlook."
Incorporated in April 2022, NTPC Green Energy, promoted by NTPC Ltd under Ministry of Power, is a renewable energy company that focuses on undertaking projects through organic and inorganic routes. The company had an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects across six states as of August 31, 2024.
Brokerage firms had mostly had a positive view on the issue but suggested it with a long-term view. IDBI Capital, HDFC Bank, IIFL Securities, and Nuvama Wealth Management were the book running lead managers of the NTPC Green Energy IPO, while Kfin Technologies served as the registrar for the issue. Shares of the company shall be listed at both BSE and NSE.