NTPC Green Energy, the renewable energy arm of state-owned NTPC, is set to debut on the stock exchanges on Wednesday, November 27, 2024.
While the IPO saw strong investor participation, with the issue oversubscribed by 2.42 times, analysts suggest that the immediate listing gains may be modest.
The long-term outlook remains optimistic as NTPC Green Energy positions itself at the forefront of India’s renewable energy transition.
Strong Subscription
The NTPC Green Energy IPO concluded on November 22, 2024, attracting significant demand, especially from retail investors.
The retail portion was oversubscribed by 3.44 times, while Qualified Institutional Buyers (QIBs) showed strong interest, subscribing 3.32 times their allotted quota. Non-institutional investors (NIIs) had a more conservative response, subscribing to just 0.81 times their allocated portion.
This broad demand suggests a strong belief in the company’s potential for long-term growth despite current market volatility.
Grey Market Premium and Listing Expectations
Grey market sources indicate that NTPC Green Energy’s unlisted shares are trading at a premium of Rs 2 over the upper end of the IPO price band of Rs 108, implying a listing price of approximately Rs 110.
This modest premium suggests a limited immediate return of around 1.85% for IPO investors. Market analysts predict a neutral to flat listing gain in the 0-5% range, indicating that short-term gains may be muted.
The company’s future prospects are promising, particularly in India’s expanding renewable energy sector.
Key IPO Facts
- The IPO offers 925,925,926 shares in a price band of Rs 102–108 per share, with a minimum lot size of 138 shares.
- Retail investors displayed the strongest demand, while the NII portion saw relatively lower interest.
- The employee and shareholder portions were subscribed 0.80 times and 1.60 times, respectively.
Strategy and Market Position
NTPC Green Energy aims to become a leading player in India’s renewable energy sector, with plans to achieve 60 GW of renewable energy capacity by FY32.
The company’s diverse portfolio spans solar, wind, and other green energy sectors, with ongoing investments in green hydrogen, battery storage, and green chemicals.
This ambitious strategy aligns with India’s renewable energy targets and positions NTPC Green Energy to contribute significantly to the nation’s energy transition.
Analysts suggest that while the immediate listing gain may be modest, NTPC Green Energy’s strategic investments and growing market position in renewable energy make it a strong candidate for long-term growth.
Investors who received allocations are advised to hold the stock through potential short-term fluctuations, while others may want to consider accumulating shares if the stock lists near the issue price.
As the renewable energy sector continues to expand, NTPC Green Energy is well-positioned to capitalize on the growing demand for sustainable energy solutions. Investors with a long-term horizon could benefit from the company’s strategic initiatives and market position.
Disclaimer – The information provided in this article is for informational purposes only and does not constitute financial advice, investment recommendations, or an endorsement of any particular stock or IPO. The views and opinions expressed are those of the authors and do not reflect the official policy or position of MarketScope Daily. Readers are advised to conduct their own research or consult with a qualified financial advisor before making any investment decisions. MarketScope Daily does not accept responsibility for any loss or damage arising from reliance on the information provided. Investment in the stock market involves risks, and past performance is not indicative of future results.
