Wed Nov 20 16:17:51 UTC 2024: **NTPC Green Energy IPO Receives Tepid Response on Day One**
MUMBAI, INDIA – NTPC Green Energy Limited’s initial public offering (IPO) opened to a muted response on its first day of trading. While the IPO, aiming to raise ₹10,000 crore through the sale of 92.59 crore shares, saw 33% subscription overall, the response was uneven across investor categories. Retail investors showed the strongest interest, subscribing 1.33 times their allocation. Non-Institutional Investors (NIIs) subscribed 16%, while Qualified Institutional Buyers (QIBs) did not participate on the first day.
The IPO, priced between ₹102 and ₹108 per share, opened on November 19th and closes on November 22nd. The company successfully raised ₹3,960 crore in an anchor round prior to the public offering. The grey market premium (GMP) currently sits at ₹1.15, suggesting a potential listing price of around ₹109.15.
The funds raised will primarily be used to invest in the company’s subsidiary, NTPC Renewable Energy Limited, repay debt, and for general corporate purposes. The IPO is expected to list on the BSE and NSE on November 27th. While retail investors showed some enthusiasm, the lack of participation from QIBs raises questions about overall market sentiment towards the offering.
First Piper 