NTPC Green Energy IPO: GMP corrects after allotment; here's what to expect

NTPC Green Energy, which has already announced the basis of allotment for its IPO earlier today, is seen headed for a muted stock market debut, if one goes by the signals from the unofficial market. The grey market premium (GMP) for the issue has been crawling lower after a muted bidding for the issue. The stock is set to get listed at the bourses on Wednesday, November 27.

A day before its listing, shares of NPTC Green Energy were commanding a grey market premium of Rs 1-2, 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.
 

Prashanth Tapse, Senior VP (Research) at Mehta Equities said that the selloff in the broader market and expensive valuations are a concern for the NTPC Green Energy. However, the company is planning an strategic expansion over new few years. "Investors should not expect any major listing gains. One should hold the stock for long-term and fresh buying around issue price," he said.


The IPO of Delhi-based NTPC Green Energy, which was open for bidding between November 19-22, was overall subscribed merely 2.42 times. The company raised a total of Rs 10,000 crore via its IPO, which was entirely a fresh share sale of up to 92,59,25,926 equity shares. It had offered its shares in the price band of Rs 102-108 per share with a lot size of 138 shares.


On an individual basis, allocation for the qualified institutional bidders (QIBs) was booked 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.
 

Mahesh M Ojha, AVP-Research at Hensex Securities said that NTPC Green Energy IPO was purely a long term story. Investors can book partial profits if 8-10 per cent gains are seen, but long term investors can hold it for a long period.


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 for a long-term subscription only. IDBI Capital, HDFC Bank, IIFL Securities and Nuvama Wealth Management are the book running lead managers of the NTPC Green Energy IPO, while Kfin Technologies is the registrar for the issue.