The NTPC Green Energy IPO, worth ₹10,000 crore, continues to capture attention on Day 2 of its subscription. The IPO, launched by NTPC’s renewable energy arm, reflects growing investor interest in sustainable energy solutions.
Key Details About NTPC Green Energy IPO
| Detail | Information |
|---|---|
| Issue Size | ₹10,000 crore |
| IPO Dates | November 19–22, 2024 |
| Anchor Investor Contribution | ₹3,960 crore |
| GMP (Grey Market Premium) | ₹0.80 |
| Price Band | ₹107–₹108 |
| Lead Managers | HDFC Bank, IDBI Capital, IIFL Securities, Nuvama Wealth Management |
Day 2 Subscription Status
The NTPC Green Energy IPO saw robust participation, particularly from retail investors:
| Category | Subscription Rate (Day 2) |
|---|---|
| Retail Investors | 1.89x |
| Non-Institutional Investors (NIIs) | 0.24x |
| Qualified Institutional Buyers (QIBs) | No bids yet |
| Employee Reserved Segment | 17% |
| Shareholder Reserved Segment | 57% |
The retail category has been oversubscribed significantly, showcasing strong confidence among individual investors.
Utilization of IPO Funds
The company aims to allocate the IPO proceeds as follows:
- Investment in Renewable Energy Projects:
- Expansion into Battery Energy Storage Systems (BESS).
- Increasing non-fossil fuel capacity to 60 GW by 2032.
- Debt Reduction:
- Repaying or prepaying existing loans linked to NTPC Renewable Energy Limited (NREL).
- Corporate Growth:
- Supporting general corporate needs.
Valuation and Growth Potential
NTPC Green Energy holds the title of India’s leading public sector renewable energy company (excluding hydro) with a strong operational capacity. Its key comparable peers include Adani Green Energy Ltd and ReNew Energy Global PLC, trading at significantly higher valuation multiples.
Expert Recommendations
| Brokerage | Recommendation |
|---|---|
| Indsec Securities | Subscribe for long-term gains due to robust growth prospects. |
| SBICAP Securities | Subscribe at the cut-off price for strong medium-term returns. |
Conclusion
The NTPC Green Energy IPO has shown promising results on Day 2, with retail investors leading the charge. However, with limited QIB participation so far, the final subscription numbers will be critical in assessing broader market confidence.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Consult your financial advisor for personalized recommendations.
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