Wed Nov 20 09:09:11 UTC 2024: ## NTPC Green Energy IPO Oversubscribed by Retail Investors
**MUMBAI, INDIA – November 20, 2023** – The initial public offering (IPO) of NTPC Green Energy, the renewable energy arm of India’s state-owned NTPC Ltd, has been met with strong demand, particularly from retail investors. The retail portion of the IPO was fully subscribed within hours of its launch on Tuesday, November 19th.
The ₹10,000 crore IPO, which comprises only fresh equity shares, saw a 33% overall subscription rate on its first day. While Qualified Institutional Buyers (QIBs) showed no participation, Non-Institutional Investors (NIIs) subscribed to 16% of the offered shares. The employee portion saw 17% subscription, and the shareholder portion reached 57%. Prior to the IPO, NTPC Green Energy raised ₹3,960 crore from anchor investors.
The company, India’s leading public sector renewable energy producer (excluding hydro) for Fiscal Year 2024, is aiming to capitalize on the growth in the renewable energy sector. NTPC Group plans to significantly expand its non-fossil fuel capacity to 60 GW by 2032. While analysts have noted a high IPO pricing compared to listed competitors, a brokerage report recommends subscribing for long-term gains, citing robust execution capabilities and the potential for significant revenue and profit growth in the coming years. The report projects CAGRs of 79.0%, 117.2%, and 123.8% for Revenue, EBITDA, and PAT respectively, over FY24-27E.
The funds raised will be used for investments in NTPC Renewable Energy Limited (NREL), debt repayment, and general corporate purposes. The IPO is expected to conclude on Friday, November 22nd. The grey market premium (GMP) currently stands at ₹0.80, suggesting a potential listing price slightly above the upper end of the IPO price band.
**Disclaimer:** This news article summarizes information from various sources. Investors are advised to conduct their own due diligence and seek professional financial advice before making any investment decisions.
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