NTPC Green Energy Limited’s initial public offering (IPO) closed on Friday with a robust overall subscription of 2.42 times the issue size, signaling strong investor interest in the green energy segment.

The shares are scheduled to list on the stock exchanges on Wednesday, November 27, 2024, marking NTPC Green Energy’s debut on Dalal Street. This listing comes at a time of growing investor focus on renewable energy companies and their potential for long-term growth.

The ₹10,000 crore public issue, priced between ₹102 and ₹108 per equity share, received bids for 14.338 crore shares against the total issue size of 5.932 crore shares. Qualified Institutional Buyers (QIBs) were the most enthusiastic, subscribing 3.32 times their allocated portion with 8.584 crore bids against 25.88 million offered shares.

Retail Individual Investors (RIIs) also showed significant appetite, oversubscribing their portion 3.44 times with 2.971 crore bids against 86.3 lakh reserved shares. Shareholders and Non-Institutional Investors (NIIs) demonstrated moderate interest, subscribing 1.60 and 0.81 times their respective portions.

The employee category saw slightly lower participation, with 0.80 times subscription. The issue, which opened on November 19 and closed on November 22, 2024, offered a ₹5 per share discount to eligible employees.

Despite the selloff mood in the market and expensive valuations, “NTPC Green Energy, the leading player of India’s renewable energy sector, received a decent demand from NII & Retail investors while NII stayed back with low interest. We believe NTPC Green Energy Ltd IPO is an opportunity to invest in a leading player of India’s renewable energy sector, backed by the formidable resources and expertise of NTPC Ltd as a long-term strategy only. With ambitious renewable energy targets, the company is well-equipped to capitalize on the increasing demand for sustainable energy solutions,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

The IPO was a 100 per cent fresh issue of equity shares, with the price band set between ₹102 and ₹108, and a face value of ₹10 per share.

Considering all the parameters, including decent subscription demand and prevailing market sentiments, “the stock can list on neutral to flat gain 0-5% range on its issue price. Allotted investors should not expect any big listing gains due to market scenario. While long-term investors should consider the company to HOLD IT FOR LONG TERM despite knowing short-term volatility in the markets and competitive pressures in the sector. For non-allotted investors, we advise to accumulate if the listing is around the issue price,” Tapse added.

Considering all parameters, including decent subscription demand and prevailing market sentiments, Tapse stated, “The stock is expected to list with neutral to flat gains in the 0-5 per cent range of its issue price. Allotted investors should not anticipate significant listing gains due to the current market scenario. However, long-term investors are advised to hold the stock, considering its potential despite short-term market volatility and competitive sector pressures. Non-allotted investors are recommended to accumulate if the stock lists near the issue price.”

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