Wed Nov 20 08:22:00 UTC 2024: ## NTPC Green Energy IPO Opens to Tepid Response on Day One
**NEW DELHI** – The initial public offering (IPO) of NTPC Green Energy, aiming to raise ₹10,000 crore, opened to a lukewarm reception on Tuesday, with only 36% subscription on its first day. While retail investors showed strong interest, exceeding their allocation by 1.46 times, Qualified Institutional Buyers (QIBs) did not subscribe at all, and Non-Institutional Investors (NIIs) showed minimal interest at 0.17 times subscription.
The IPO, offering 92.59 crore fresh shares priced between ₹102 and ₹108, is slated to close on November 22nd. Analysts have raised concerns regarding the company’s high valuation (a price-to-earnings ratio of 264x based on FY24 earnings), heavy reliance on a few major customers, and concentration of projects in Rajasthan, exposing it to regional risks.
Several brokerages advise caution, recommending the IPO only for long-term investors with a high-risk tolerance. The grey market premium (GMP), an unofficial indicator of investor sentiment, has fallen significantly to ₹0.80, suggesting a potential listing gain of only 0.74% above the highest price band. This sharp drop from a recent ₹11 GMP reflects waning investor enthusiasm. Despite operating in the burgeoning renewable energy sector, the risks associated with NTPC Green Energy’s business model appear to be outweighing the potential returns for many investors.
First Piper 