Wed Nov 20 12:07:28 UTC 2024: ## NTPC Green Energy IPO Opens Strong, Retail Investors Drive Early Success
**MUMBAI, November 20, 2024** – NTPC Green Energy, a wholly-owned subsidiary of NTPC, saw a strong start to its initial public offering (IPO) on its first day, November 19th. The IPO, aiming to raise ₹10,000 crore (approximately $1.2 billion USD) through the sale of 92.59 crore fresh shares, closed on November 22nd. Shares are expected to list on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 27th.
While overall subscription reached 33-36% on Day 1, retail investors showed significant enthusiasm, fully subscribing their allocated portion (1.33-1.47 times oversubscription). However, the response from Qualified Institutional Buyers (QIBs) was muted, with minimal participation. Non-institutional investors (NIIs) showed moderate interest (0.15-0.17 times subscription).
The IPO price band is set between ₹102 and ₹108 per share, with a grey market premium indicating a potential listing price around ₹108.80. Analysts offer mixed opinions on valuation, with some citing aggressive pricing at the upper band (PE of 259.56x and PB of 4.96x based on FY25 annualized earnings), while others highlight the company’s long-term growth potential, strong parentage, and strategic expansion into green hydrogen and battery storage.
NTPC Green Energy boasts a substantial portfolio of renewable energy projects (solar and wind) across six Indian states, mitigating geographical risks and benefiting from long-term power purchase agreements. The company reported impressive growth in FY24, with a 101% increase in net profit and an over 10-fold increase in revenue. Its strong financial performance, coupled with India’s booming renewable energy sector and government support, fuels optimistic long-term projections. However, the initial lukewarm reception from institutional investors serves as a cautionary note. The final allotment of shares is expected on November 25th.
First Piper 