Mon Nov 18 09:37:59 UTC 2024: ## NTPC Green Energy IPO Opens Amidst Subdued Investor Interest

**New Delhi, November 18, 2024** – The highly anticipated initial public offering (IPO) of NTPC Green Energy, a subsidiary of the state-owned power giant NTPC, will open on Tuesday, November 19th, and close on November 22nd. However, the IPO is facing unexpectedly low investor enthusiasm, as evidenced by a stagnant grey market premium (GMP).

The ₹10,000 crore IPO is priced between ₹102 and ₹108 per share. The GMP, an unofficial indicator of investor sentiment, has remained stubbornly at ₹1 for the past three days, representing only a 0.93% premium over the upper price band. Analysts attribute this low GMP to weak interest, particularly from non-institutional investors. This contrasts sharply with earlier expectations; the price band was initially projected much higher, with a correspondingly higher GMP. The recent subdued performance of other IPOs, like Hyundai Motor India and Afcons, is also cited as a contributing factor to the overall market pessimism.

Despite the subdued interest, NTPC shareholders are allocated a 10% quota, potentially boosting their participation. Investors holding NTPC shares in their demat accounts as of November 13th are eligible to apply under this quota. Buying NTPC shares now will not grant eligibility for this quota.

While the IPO initially garnered significant attention due to the recent successful listings of Premiere Energies and Waaree Energies, and the backing of a state-owned entity, the subsequent sell-off pressure experienced by these companies, coupled with the current bearish market trend, appears to have dampened enthusiasm.

Despite the low GMP, several brokerages, including SBI Securities and Reliance Securities, recommend subscribing to the IPO for long-term investment, citing the company’s strong growth potential in renewable energy and its strategic importance within India’s net-zero goals. The company’s revenue has grown significantly, with a compound annual growth rate (CAGR) of 46.82% from FY22 to FY24.

The IPO is a fresh issue, with proceeds primarily allocated to investments in NTPC Renewable Energy Limited and general corporate purposes. The allotment is scheduled for November 25th, and the listing is expected on November 27th. A discount of ₹5 per share is offered to eligible employees.

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