NTPC Green Energy listed on the stock market on 27 November. Its shares debuted with a modest premium and the IPO was subscribed 240%. The company aims to utilize the funds raised towards debt repayment of NREL. The listing has been off to a slow start for investors.
NTPC Green Energy started its listing on the stock exchange on Wednesday 27 November. Its shares have made a slow start, which will disappoint IPO investors. The IPO of NTPC Green Energy was open for investors from 19 to 22 November.
NTPC Green Energy shares listed on the NSE (National Stock Exchange) at Rs 111.50, a premium of 3.2 per cent. Its listing price on BSE (Bombay Stock Exchange) was Rs 111.60, which was up 3.33 percent. The listing was in line with the company’s initial expectations, as analysts had expected its premium to be significantly lower. The company received 240 percent (2.40 times) subscription during the IPO. Currently the company’s share is trading at Rs 119, which is 10.73 percent above the listing price.
IPO and subscription details
The IPO of NTPC Green Energy was in the form of a completely new issue (FPO) with no offer for sale (OFS) component. The company had fixed the price band of Rs 102-108 per share for the IPO. Bidding took place in several categories for this IPO:
- The portion reserved for retail investors was subscribed 3.38 times.
- The portion reserved for QIBs (institutional investors) was subscribed 3.32 times.
- The portion reserved for non-institutional investors was subscribed only 0.81 times.
- There were share sale offers worth a total of Rs 10,000 crore and bids were received for more than 1.42 billion shares.
Gray Market Premium and Company Objective
According to investorgain.com the GMP of NTPC Green Energy is Rs 1. The shares are trading at Rs 109 in the unofficial market, up 0.93 per cent or Re 1 from the IPO price of Rs 108.
The company will use the funds raised from the IPO to repay the outstanding loans of NTPC’s subsidiary, NTPC Renewable Energy Limited (NREL). In addition, a portion of the income will also be used for general corporate purposes.
Company identity and portfolio
NTPC Green Energy is a ‘Maharatna’ government company. This company works on solar and wind energy projects. Apart from this, due to the support and patronage that the company is getting from the Government of India, its future performance expectations are also considered better.
