NTPC Green Energy IPO: The second day of bidding in NTPC Green Energy IPO commenced on Thursday, November 21, 2024. So far, the green energy IPO has received a massive response from NTPC shareholders and retail individual investors. The proposed equity shares are going to be listed on BSE and NSE.

NTPC Green Energy IPO Subscription Status:

On day 1, which was on November 19, the IPO received bids of 19,46,53,968 equity shares against the offered size of 59,31,67,575 equity shares, registering about 33% of subscriptions. The portion for retail individual investors had fully subscribed by 1.33 times on the first day itself, while the shareholders’ quota received 57% subscription against the offered size. Employees’ reservations subscribed by 17%. Meanwhile, non-institutional investors saw a subscription of 15% against the allocated portion. However, qualified institutional buyers (QIBs) showed dull demand on Day 1.

NTPC Green Energy IPO GMP Today:

As per Investor Grain, NTPC Green Energy IPO’s last GMP is Rs 0.80, last updated Nov 21st 2024 05:03 AM. With a price band of 108.00, NTPC Green Energy IPO’s estimated listing price is Rs 108.8 (cap price + today’s GMP). The expected percentage gain/loss per share is 0.74%.

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.

The Issue is being made through the book-building process, 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.

Additionally, 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.

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.

Should You Subscribe to the IPO?

According to the Stock Holding Services Limited report, the NTPC Green Energy Ltd. (NGEL) IPO offers investors a chance to be part of India’s renewable energy expansion, with NGEL targeting 60 GW in renewable capacity by 2032. The IPO is expected to support NTPC’s green transition by funding large solar, wind, and hydrogen projects. Given NGEL’s alignment with India’s climate goals and the growing interest in ESG investments, it could attract fundamental investors with a long-term perspective.

NTPC Green Energy IPO Day 1: Bidding Opens, Price Bands Rs 102-108; Subscribe Or Avoid, What Experts Say?

However, the brokerage also pointed out that immediate listing gains may be limited due to current market conditions, making NGEL more suitable for investors focused on strong fundamentals and long-term growth potential.

Nonetheless, given the company’s ambitious expansion plans, the brokerage believes that NTPC Green Energy is well-positioned for strong long-term performance, making it a compelling investment opportunity. The overall outlook on this issue remains positive, as its robust growth potential is expected to generate substantial capital gains for investors. With a strategic focus on innovation and scaling operations, the issue stands out as a top investment pick for those seeking strong returns.

Story first published: Thursday, November 21, 2024, 10:30 [IST]