Tue Nov 19 05:13:32 UTC 2024: ## NTPC Green Energy IPO Opens with Tepid Investor Interest

**NEW DELHI** – The much-anticipated Initial Public Offering (IPO) of NTPC Green Energy Limited (NGEL) opened today, November 19th, but is facing underwhelming investor enthusiasm. The grey market premium (GMP), an unofficial indicator of expected listing gains, has plummeted to a mere ₹2, down from ₹18 just days ago. This low GMP could significantly dampen retail investor participation unless it 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 offer price is fixed between ₹102 and ₹108 per share. The company boasts a strong presence in solar and wind energy, and is also expanding into green hydrogen and energy storage.

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

Despite the low GMP, NGEL’s financials are impressive. The company’s operational capacity has reached 3,220 MW in solar and 100 MW in wind power 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 the current low GMP raises concerns, investors will be watching closely to see if the situation changes before the IPO closes.

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