Tue Nov 19 05:36:06 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 offer, which closes on November 22nd, aims to raise ₹10,000 crore through the issuance of fresh equity shares; there is no offer-for-sale (OFS) component.

Despite the ambitious fundraising target, the IPO’s grey market premium (GMP) has significantly declined amidst weak market sentiment. Experts tracking unofficial market trends report the share is 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 fluctuating nature of the grey market means this is not guaranteed.

Brokerage firms offer mixed signals. 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. However, they acknowledge the inherent risks associated with the volatile market. ICICI Securities highlights the company’s robust operational capacity (3.2GW) and ambitious expansion plans, including contracted projects (12GW) and a substantial future pipeline (11GW). They also point out NTPC’s overall target of 60GW renewable energy capacity by FY32.

NTPC Green Energy, the largest renewable energy PSU (excluding hydro) by operating capacity, reported a significant increase in revenue (1094% YoY) to ₹2,037.66 crore in FY23-24 and a 101% YoY rise in net profit 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, with the remaining funds allocated to general corporate purposes.

**Disclaimer:** This news article presents information from various sources. Investors are advised to conduct thorough due diligence and seek professional financial advice before making any investment decisions.

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