NTPC Green Energy: Third largest listing of year 2024

NEW DELHI: NTPC Green Energy, the renewable energy arm of NTPC, made its debut on the stock exchange today, November 27. It followed a successful initial public offering (IPO) that raised ₹10,000 crore. The IPO, conducted between November 19 and November 22, saw strong demand from investors, with an overall subscription rate of 2.42 times. The shares of NTPC Green Energy debuted on the exchanges with a premium of over 3%.

Retail individual investors (RIIs) led the demand, with their portion subscribed 3.39 times, while qualified institutional buyers (QIBs) followed closely with a subscription rate of 3.32 times. The non-institutional investor segment, however, saw a slightly muted response, achieving 81% subscription. The shares were offered in a fixed price band of ₹102-108 per share.

On its debut, NTPC Green Energy’s shares surged as much as 14%, making it one of the most notable listings of the year. By 2:22 PM on the NSE, the stock was trading 9.89% higher at ₹122.53, pushing the company’s market capitalization to ₹1,03,247.82 crore.This IPO now ranks as the third-largest of 2024, following Hyundai Motor India’s ₹27,870 crore issue and Swiggy’s ₹11,300 crore offering.

The IPO was met with considerable enthusiasm despite initial grey market predictions of a modest ₹1 premium, which indicated a 0.93% gain over the issue price. The strong stock market debut highlights the growing investor appetite for renewable energy ventures.

NTPC Green Energy, a ‘Maharatna’ central public sector enterprise, is a key player in the renewable energy sector with a robust portfolio of solar and wind power assets. The company aims to play a pivotal role in India’s green energy transition, contributing significantly to the country’s renewable energy targets.

The funds raised through the IPO will likely be directed toward expanding its clean energy capacity and enhancing its operational efficiency.