Mon Nov 25 19:42:13 UTC 2024: ## NTPC Green Energy IPO Oversubscribed, But Priced Aggressively: Analysts
**Mumbai, November 22, 2024** – The initial public offering (IPO) of NTPC Green Energy concluded today, attracting 2.4 times oversubscription. The ₹10,000 crore offering, priced between ₹102 and ₹108 per share, saw strong retail investor interest (3.36 times oversubscription), while the institutional investor portion was less enthusiastic (0.8 times).
While the IPO exceeded expectations in terms of subscriptions, concerns remain regarding its valuation. The grey market premium (GMP), an unofficial indicator of investor sentiment, plummeted from ₹3 on the first day to zero by the close, suggesting a potentially flat market debut on Wednesday, November 27th.
Several brokerage firms, including Bajaj Broking and Anand Rathi, have recommended the IPO for long-term investors despite acknowledging the aggressive pricing. Based on projected FY25 earnings, the price-to-earnings ratio is significantly high. However, analysts highlight the company’s expansion plans, strong parentage (NTPC), and position within the growing renewable energy sector as key long-term positives. Geojit Securities also assigned a “subscribe” rating for long-term investment.
The company, a leading renewable energy generator with solar, wind, and expanding hydroelectric assets, is expected to finalize share allotment on November 25th, with shares credited to successful bidders the following day. While the high valuation presents a risk, experts believe its long-term growth prospects make it an attractive option for investors with a high-risk tolerance and a long-term investment horizon. Investors are advised to seek professional financial advice before investing.
First Piper 