NTPC Green Energy IPO: Brokerages Bullish on Long-Term Growth Potential
The much-anticipated IPO of NTPC’s renewable energy arm, NTPC Green Energy, is set to open for public subscription on Tuesday, November 19, 2024, and brokerages are largely optimistic about its future prospects. Analysts recommend subscribing to the IPO, citing its strong long-term potential in the rapidly growing green energy sector. The IPO’s anchor investor bidding is scheduled for today.
Objectives of the NTPC Green Energy IPO
According to the Red Herring Prospectus, the funds raised through the IPO will be utilized for:
- Funding investments in NTPC Renewable Energy (NREL), a wholly-owned subsidiary.
- Repayment or prepayment of certain existing borrowings.
- General corporate purposes.
Key Details of the NTPC Green Energy IPO
- Offer Size: The IPO is valued at Rs 10,000 crore, and it will be a book-built issue comprising a fresh issue of 92,59,25,926 shares.
- Price Band: Rs 102 – 108 per share.
- Lot Size: The minimum bid is for 138 shares, requiring an investment of Rs 14,904 for retail investors.
NTPC Green Energy IPO Grey Market Premium (GMP)
The grey market premium (GMP) for NTPC Green Energy’s unlisted shares saw a decline on Monday. The shares were trading at a premium of Re 1 over the upper end of the IPO price band, which represents a GMP of 0.93%. This marks a Rs 2 drop from the Rs 3 premium recorded on Friday, November 14, 2024, as per sources tracking grey market activity.
As the IPO approaches, market experts remain confident about the long-term growth potential of NTPC Green Energy, driven by India’s increasing focus on renewable energy.
