NTPC Green Energy IPO Allotment Status GMP Subscription Status.
One of the highly expected issues of 2024, NTPC Green Energy IPO is soon to make headlines cracking another milestone in days as the allotment date for the issue has been scheduled on November 25, 2024.
Fresh issuance from the stable of NTPC Renewable Ltd has attracted multiple retail and institutional investors and now the company is ready to face the market. Such general introduction and here is everything you need to know about the allotment process, grey market premium (GMP), subscription performance and market expectations.
Date Method for Distribution:
The result of the allotment of the IPO will be closed on 25th November 2024. The allotment will be accessible through the BSE portal or IPO registrar’s portal with your allotment PAN, application number, or DP ID/client ID. Results will be available post 5 PM. The shares of allottees will get credited in their Demat account. Unallocated applications will be refunded parallel by 26th November 2024.
Grey Market Premium (GMP) Update:
The NTPC Green Energy shares are trading in the GMP range of ₹0.20 to ₹1.85 a share or just listing on or just a shade above the IPO price of ₹102-₹108 a share. GMP has come down now to as low as ₹25. It shows not so great market sentiment and one can sense a volatility is in the air.
This somewhat soft premium of this IPO will probably also bring about a flat to modest debut, assuming that everything else is equal with the general market sentiment.
Subscription summary The IPO which was opened for bid between November 19 and November 22, 2024 had witnessed an overall subscription rate of 2.42x.
Retail Investors: They, too, are the most hopeful lot, applying three times for their share for 3.44 times.
Qualified Institutional Buyers:
No cause for worry with the subscription at 3.32 times.
Non-Institutional Investors (NIIs): Quite soft was that since its quota subscribed at 81%.
The issue saw bids for over 141 crore shares against 59.3 crore shares on offer, very healthy participation both in the retail and QIBs, a pointer of investor confidence in the long-term prospects of NTPC Green Energy.
Business Overview and Growth Opportunity
NTPC Green Energy Ltd. is the arm for the new era of renewable energy. It stands as India’s largest power producer, with a diversified portfolio of operational, contracted, and pipeline projects, boasting 26,071 MW. NGEL will also explore green hydrogen, green chemicals, and battery storage as it tries to capture share in global energy trends.
The problem boasts good growth prospects, though this has been heavily criticized for aggressive valuations. This IPO to be floated is expected to raise a market cap of ₹91,000 crore at the top price band. Price to book value stands at 4.96x and price-to-earnings ratio at 259.56x. Analysts are looking more toward issue recommendations as suited for long-term investors who have a higher appetite for risk.
Expectations from Listing
NTPC Green Energy to list on both BSE and NSE 27 Nov, 2024 Will list flat to marginally positive as GMP has fallen together with mixed subscription coming into the picture but synergy with India’s renewable energy plan and balance sheet strength by the company will be good long plays for investors.
Issue Size: Rs 10,000 crore
Price Band: ₹ 102 – ₹ 108 per share Minimum Investment ₹14,904 (138 shares per lot)
Date of Allotment: 25 November 2024.`
`Date of Listing: 27 November 2024
Market Sentiment and Recommendation
Pretty reflective of the guarded optimism that investors see from the subsequent play of market dynamics and then the pricing of the IPO, a subdued GMP is pretty. With vast growth possibilities from renewables, NTPC Green Energy has very little scope for short-term gains in its valuation.
Long-term investors acting in sync with times on India’s green shift would find this an attractive proposition; short-term traders need to make concessions, however. It will be continued with further updates in allotment and listing. More detail, if any, can be obtained from the registrar or your financial advisors before investing.