Mon Nov 18 17:57:40 UTC 2024: ## NTPC Green Energy IPO Opens Amidst Lackluster Investor Enthusiasm

**NEW DELHI** – The much-anticipated initial public offering (IPO) of NTPC Green Energy Limited (NGEL) opened today, November 19th, but investor excitement appears subdued. The grey market premium (GMP) for NGEL shares has plummeted to a mere ₹2, down significantly from ₹18 just days ago. This decline could lead to reduced participation from retail investors unless the GMP improves before the IPO closes on November 22nd.

NGEL, a leading renewable energy company in India, aims to raise ₹10,000 crore through the IPO. The price band is set at ₹102-₹108 per share. The company has a strong presence in solar and wind energy and is expanding into green hydrogen and energy storage.

The IPO comprises a fresh issue of 92.59 crore equity shares. The minimum investment is ₹14,904 for a lot of 138 shares. A significant portion (75%) is reserved for qualified institutional buyers (QIBs), with 15% allocated to non-institutional investors and 10% for retail investors. The funds raised will be used for investments in NTPC Renewable Energy Limited (NREL) and other corporate purposes. Share allotment is scheduled for November 25th, with credits to demat accounts and refunds on November 26th. Listing on the BSE and NSE is expected on November 27th.

NGEL’s operational capacity reached 3,220 MW in solar and 100 MW in wind energy by September 2024. Revenue surged from ₹910 crore to ₹1,963 crore between FY22 and FY24, with net profit exhibiting a 90.8% compound annual growth rate (CAGR). The company targets developing 60 GW of projects by 2032, incorporating advanced technologies like green hydrogen and energy storage. While market watchers report a grey market premium of ₹2, placing the estimated listing price around ₹110, investors are cautioned that GMP is not a guarantee of post-listing performance.

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