The NTPC Green Energy IPO, launched on November 19, 2024, has generated a lot of interest among investors, especially retail investors. This IPO is a part of NTPC Ltd.’s effort to expand its renewable energy business, and it offers a great opportunity for investors looking to invest in green energy, a rapidly growing sector in India.
IPO Subscription Status
As of Thursday, November 21, 2024, the NTPC Green Energy IPO has been subscribed 47%. This means that almost half of the total shares have been applied for. The retail investor portion, which is for small investors, has been fully subscribed and booked 1.89 times. This shows strong interest from individual investors.
On the other hand, the Non-Institutional Investors (NII) portion, which includes high-net-worth individuals and small institutions, has been subscribed only 0.24 times. This indicates a lukewarm response from this group. The Qualified Institutional Buyers (QIB) portion has yet to see much activity. These investors are typically large institutions, and the lack of demand from them may suggest some uncertainty or caution in the market.
IPO Details
NTPC Green Energy’s IPO is set at a price band of ₹108 per share. The total value of the IPO is estimated at ₹10,000 crore, and it involves only newly issued shares.
The current Grey Market Premium (GMP) for the NTPC Green Energy IPO stands at ₹0.80. This means that the shares are trading at a premium of ₹0.80 over the issue price in the unofficial grey market. The GMP is an indicator of the market’s expectations for the stock price once it starts trading on the stock exchange.
The current GMP suggests that investors expect the stock to list at a slight premium. Based on the GMP, the estimated listing price for the shares could be around ₹108.80, which is 0.74% higher than the issue price of ₹108.
NTPC Green Energy is backed by NTPC Ltd., India’s largest power generator, which is a government-owned company with a long track record of success. This gives investors confidence that the company has the backing and expertise to succeed in the renewable energy space.
The company focuses on renewable energy sources, which are becoming increasingly important in India’s effort to combat climate change and reduce dependence on fossil fuels. With India’s growing demand for clean energy, NTPC Green Energy is well-positioned to benefit from this trend.
Investors should carefully evaluate the company’s financials and risks before deciding to invest. It’s always a good idea to consult with a financial advisor to make an informed decision based on individual risk tolerance and investment goals.