One of the much awaited IPO for the month of November 2024, NTPC Green Energy, is set to open for subscription on November 19, 2024 (Tuesday). NTPC Green Energy is a energy arm of the state-owned NTPC.
The public issue, aims to raise up to Rs 10,000 crore and will close on November 22.
Here is everything you need to know about the IPO, its details, and the market sentiment ahead of the opening.
Key Details of the NTPC Green Energy IPO
NTPC Green Energy’s public offering is entirely a fresh issue of 92.59 crore equity shares.
The price band for the issue set by the company is between Rs 102 to Rs 108 per share. Moreover, the IPO will be available for subscription from November 19 to November 22, 2024.
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With a move to expand it renewable energy portfolio, the company plans the funds received from the offerings to be used primilarly in investing in its wholly-owned subsidiary, NTPC Renewable Energy Limited (NREL).
In addition to this, part of the funds will go towards repaying outstanding borrowings.
Market Sentiment: Grey Market Premium and Investor Appetite
Ahead of the IPO’s opening, the grey market premium (GMP) for NTPC Green Energy shares has seen a significant dip. As of November 17, the GMP stands at just Rs 1-2 per share.
This is a sharp decline from the previous week when the shares commanded a GMP of Rs 9, which translated into a 2.78 per cent premium.
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The current GMP suggests modest expectations of listing gains, with shares possibly debuting at a premium of just 0.93 per cent over the issue price.
Investment Details
NTPC Green Energy’s IPO will have a lot size of 138 shares. The offer is split between Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and retail investors, with the majority 75 per cent reserved for QIBs.
Retail investors can apply for up to 10 per cent of the issue, with employees of NTPC Green Energy offered a discount of Rs 5 per share on their allotted shares.
Listing
The listing of the NTPC public issue is expected to take place on November 27, on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in IPOs involves risks and potential volatility. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred by readers.
