Mon Nov 18 17:07:57 UTC 2024: ## NTPC Green Energy IPO Opens with Reduced Grey Market Premium

**Mumbai, November 18, 2024** – NTPC Green Energy Limited’s initial public offering (IPO) opened today, November 19th, with a price band of ₹102-₹108 per share. The offering, which closes on November 22nd, aims to raise ₹10,000 crore through the issuance of fresh equity shares. However, the IPO’s grey market premium (GMP) has declined significantly in the face of weak market sentiment.

Experts tracking grey market trends report that NTPC Green Energy shares are currently trading at a premium of only ₹1-₹2, suggesting a potential listing price around ₹109. This represents a considerable drop from the ₹25 premium observed on November 9th. While this indicates a potentially modest profit for investors, the volatile nature of the grey market means this is not guaranteed.

Brokerage houses offer mixed perspectives. SBI Securities recommends subscribing to the IPO for long-term investment, noting that at the upper price band of ₹108, NGEL’s valuation is 53.4 times its FY24 enterprise value-to-EBITDA. ICICI Securities highlights the company’s significant operational capacity (3.2GW), contracted renewable energy projects (12GW), and future development pipeline (11GW), expressing optimism about its growth potential. NTPC aims for 60GW of renewable energy capacity by FY32.

NTPC Green Energy, the largest renewable energy PSU (excluding hydro) in terms of operating capacity and power generation, reported a remarkable 1094% year-on-year revenue increase in FY23-24, reaching ₹2,037.66 crore. Net profit also saw a substantial 101% rise to ₹344.72 crore.

The company plans to utilize ₹7,500 crore of the IPO proceeds to repay debt owed by its subsidiary, NTPC Renewable Energy, which had consolidated debt of ₹16,235 crore as of July 2024. The remaining funds will be used for general corporate purposes.

**Disclaimer:** The views expressed by experts and brokerage firms are their own and do not reflect the views of Moneycontrol.com. Investors should always seek advice from certified experts before making any investment decisions.

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