NTPC Green Energy IPO: The behemoth Rs 10,000 crore IPO is set to close on Friday, November 22, 2024. So far, the IPO has received strong demand from retail investors and NTPC shareholders. With the last date of bidding, it is important to know as an NTPC shareholder if you are eligible to bid or not. NTPC Green Energy IPO will be listed next week on BSE and NSE. The latest GMP is flat.

NTPC Green Energy IPO Subscription Status:

By the end of the second day of bidding on November 21, the IPO subscribed by 93% of the offered size. Shareholders quota and retail individual investors (RIIs) category fully subscribed by 1.01x and 2.38x respectively.

Here’s How To Apply For The Shareholders Quota:

1. Check Eligibility: Before bidding in the shareholders’ quota of NTPC Green Energy IPO, you need to first check whether you are eligible or not. Only those investors are eligible who held Maharatna PSU NTPC stock in their demat account by the end of November 12, 2024. The reason is that NTPC Green Energy is considering only those investors to apply for their shareholders quota who are holding NTPC shares before the filing of the red herring prospectus (RHP) which was done on November 13, 2024. Hence, November 12 was the record date for determining eligibility.

2. Investment In Shareholders: If you are holding NTPC shares before November 13, then you can apply for NTPC Green IPO. However, there is a limit to how much investment can be done. As per the RHP, the maximum investment allowed by NTPC shareholders in the IPO is to the tune of Rs 2 lakh.

3. Know The Details Of The IPO: It is important that the investor is aware of key details of the IPO. The size of the shareholders’ quota, the price band, the grey market premium (GMP), subscription status, bid lot size, and terms & conditions.

4. Submit Your Application: As per the Bajaj Broking website, to apply under the shareholder’s quota, you must submit your application through your broker or the platform you are using to invest in the IPO. Provide all the required details and ensure that you are applying under the correct category.

5. Other Categories To Apply: Apart from shareholders quota, there is also an option such as the retail individual investors (RII) category as well, where investment can be made. Also, if you are a high net-worth investor then there is a non-institutional investors category to apply in.

The IPO size is Rs 10,000 crore and is an entirely fresh issue. Of the total, the company has reserved Rs 200 crore worth of shares for its employees. The eligible employees will get these shares at a discount of Rs 5 per share to the final issue price. Further, Rs 1,000 crore worth of shares are reserved for shareholders.

Additionally, the issue is 100% book building, wherein at least 75% of the net issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the net issue shall be available for allocation to non-institutional investors, and not more than 10% of the net issue shall be available for allocation to retail individual investors.

NTPC Green Energy IPO Details:

The IPO is an entirely fresh issue worth Rs 10,000 crore and opened on Tuesday, November 19, 2024. Subscription will close on Monday, November 22, 2024. The price band for the Offer has been determined at Rs 102 – Rs 108 per equity share. The IPO will fetch Rs 10,000 crore at the upper end of the price band. Investors can bid for a minimum of 138 equity shares and in multiples of 138 equity shares thereafter.

After the IPO, the allotment of shares will be considered on November 25, 2024, while the initiation of refunds or credit of shares to the demat account will take place on November 26. This will follow the listing on BSE and NSE on November 27.

NTPC Green Energy IPO GMP:

As per Investor Grain, NTPC Green Energy IPO last GMP is Rs 0, last updated Nov 21st 2024 09:28 PM. With the price band of 108.00, NTPC Green Energy IPO’s estimated listing price is Rs 108 (cap price + today’s GMP).The expected percentage gain/loss per share is 0.00%.

Should You Subscribe The IPO?

As per Adroit Financial report, from a valuation perspective, the IPO is priced aggressively at 235x (on the upper price band), ROE and ROCE have decreased, compared with last financial year but have maintained since incorporation. The ROE and ROCE for FY2023-24 were5.5% and6.2% respectively. EV/EBITDA is higher than its peers,i.e.,53.4x for FY2023-24.

Therefore, the brokerage’s note said, it is recommended to “Subscribe” to the IPO as for long-term investment, and considering its valuation and growth potential.

Story first published: Thursday, November 21, 2024, 23:47 [IST]