Wed Nov 20 13:44:48 UTC 2024: ## NTPC Green Energy IPO Opens to Tepid Response on Day One

**Mumbai, November 19, 2024** – The much-anticipated ₹10,000 crore initial public offering (IPO) of NTPC Green Energy Ltd (NGEL), a subsidiary of India’s largest power generator NTPC Ltd, opened for subscription today with a lukewarm reception. By the close of trading, the IPO had been subscribed only 0.33 times (33%).

The IPO, which offers fresh equity shares priced between ₹102 and ₹108 per share, aims to raise funds for debt repayment and general corporate purposes. A significant portion, ₹7,500 crore, is earmarked for repaying debt incurred by its subsidiary, NTPC Renewable Energy. The three-day offering closes on November 22nd.

While the retail investor portion was oversubscribed by 1.33 times, the response from qualified institutional buyers (QIBs) was notably weak, with zero subscriptions. Non-institutional investors (NIIs) also showed limited interest, with a subscription rate of just 0.16 times.

Despite the underwhelming initial response, several brokerage firms maintain a positive outlook on NGEL’s long-term prospects, citing its strong parentage, growth potential within India’s expanding renewable energy sector, and ambitious expansion plans. They recommend the IPO for investors with a long-term horizon and a higher risk tolerance.

Ahead of the IPO, NGEL successfully raised ₹3,960 crore through an anchor book, with the Life Insurance Corporation of India (LIC) being the largest investor, contributing ₹500 crore. Other notable anchor investors included several global and domestic mutual funds and sovereign wealth funds.

NGEL aims to significantly expand its renewable energy capacity to 19 gigawatts (GW) by March 2027. The company currently operates a portfolio of approximately 3.3 GW of solar and wind projects. NTPC CMD Gurdeep Singh expressed confidence in the IPO’s eventual success, highlighting NGEL’s strong fundamentals and the parent company’s robust balance sheet.

The market’s response to the IPO will be closely watched, particularly given the current market sentiment and the fact that Indian stock markets are closed on Wednesday due to the Maharashtra Assembly elections. The final subscription figures will be released after the IPO closes on Friday.

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