Shares of NTPC Green Energy, a Delhi-based renewable energy company, made a steady debut on the stock market, listing at a 3.33% premium on the BSE and a 3.24% premium on the NSE. The initial public offering (IPO), which ran from November 19-22, 2024, aimed to raise Rs 10,000 crore, marking a significant milestone for the state-run enterprise focused on renewable energy.
A Closer Look at NTPC Green Energy’s IPO
NTPC Green Energy offered 92.59 crore fresh equity shares, priced between Rs 102-108 per share, with a minimum application size of 138 shares. The IPO witnessed a moderate response, with an overall subscription of 2.42 times. The allocation for qualified institutional buyers (QIBs) was subscribed 3.32 times, while retail investors showed strong interest with a subscription rate of 3.44 times. However, the portion for non-institutional investors (NIIs) fell short, achieving only 81% of the targeted bids.
Listing Details and Performance
The company’s shares were listed on November 27, 2024, at Rs 111.60 on the BSE, reflecting a 3.33% premium over the issue price of Rs 108. Similarly, on the NSE, the shares opened at Rs 111.50, marking a 3.24% premium. These figures align with the grey market premium (GMP) predictions, which suggested a marginal gain of Rs 1-2 per share. Despite modest listing gains, analysts remain optimistic about the company’s long-term growth potential.
NTPC Green Energy’s Renewable Portfolio
Promoted by NTPC Ltd under the Ministry of Power, NTPC Green Energy focuses on renewable energy projects through both organic and inorganic growth strategies. Incorporated in April 2022, 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. This makes it a pivotal player in India’s transition to sustainable energy.
Market Sentiment and Expert Opinions
Brokerage firms have largely maintained a positive stance on NTPC Green Energy’s IPO. Experts suggest a long-term investment perspective, citing the company’s strong project pipeline and operational capacity. IDBI Capital, HDFC Bank, IIFL Securities, and Nuvama Wealth Management served as the book-running lead managers for the IPO, while KFin Technologies was the registrar.
Key Highlights of the IPO
- IPO Dates: November 19-22, 2024
- Issue Size: Rs 10,000 crore
- Price Band: Rs 102-108 per share
- Subscription Rates:
- Qualified Institutional Buyers: 3.32 times
- Retail Investors: 3.44 times
- Non-Institutional Investors: 0.81 times
- Employees: 0.80 times
- Listing Price: Rs 111.60 (BSE), Rs 111.50 (NSE)
NTPC Green Energy’s market debut reflects steady investor confidence in India’s renewable energy sector. While the listing gains were modest, the company’s robust operational capacity and government backing position it as a promising long-term investment. As India accelerates its transition to clean energy, NTPC Green Energy’s focus on solar and wind projects will likely play a crucial role in shaping the industry’s future.
