Tue Nov 19 16:29:04 UTC 2024: ## NTPC Green Energy IPO Opens Weak Despite Market Rally

**MUMBAI, INDIA** – The initial public offering (IPO) of NTPC Green Energy Limited, India’s largest renewable energy public sector enterprise, opened weakly on Tuesday, despite a brief market rally. The IPO, aiming to raise ₹10,000 crore (approximately $1.2 billion USD) through a fresh issue of 92.59 crore shares, saw only 36% subscription on its first day.

While retail investors showed robust interest, subscribing 1.46 times their allotment, Qualified Institutional Buyers (QIBs) showed zero interest. Non-Institutional Investors (NIIs) subscribed a mere 0.17 times. The overall subscription rate stands at a low 0.36 times.

The IPO, priced between ₹102 and ₹108 per share, is set to close on November 22nd, with allotment expected by November 25th and listing on the BSE and NSE on November 27th. A minimum investment of ₹14,904 (138 shares) is required for retail participation.

Despite being the third-largest IPO of the year, after Hyundai Motors India and Swiggy, the offering has been met with lukewarm reception. Analysts attribute this to an aggressive valuation, with a P/E ratio of 264x as of FY2024, significantly higher than competitors. The grey market premium (GMP) has also fallen to ₹1.15, suggesting a potential listing gain of only around 1.06%.

Several brokerages have issued mixed recommendations. Swastika Investmart and Baja Broking recommend the IPO for long-term investors only, while Mehta Equities suggests it’s suitable only for risk-tolerant investors with a long-term perspective (3-5 years). Lemonn echoes concerns over the valuation, stating it’s only suitable for high-risk, long-term investors.

**(Disclaimer: This news article summarizes information from various sources. It is advisable to consult a qualified financial advisor before making any investment decisions.)**

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