The NTPC Green Energy Limited initial public offering (IPO) is generating significant buzz as it approaches its allotment date. With the allotment expected on November 25, 2024, and the listing set for November 27, 2024, investors are keen to understand the details surrounding this IPO.
Important Dates
- IPO Opening Date: November 19, 2024
- IPO Closing Date: November 22, 2024
- Allotment Date: November 25, 2024
- Shares Credited to Demat Accounts: November 26, 2024
- Listing Date: November 27, 2024
Subscription Status
The NTPC Green Energy IPO was met with robust demand, achieving an overall subscription rate of approximately 2.42 times. The retail investor segment was particularly strong, subscribing 3.44 times, while qualified institutional buyers (QIBs) subscribed over 3.3 times. Non-institutional investors (NIIs) saw an uptake of 81%.
Grey Market Premium (GMP)
As of November 24, the grey market premium (GMP) for NTPC Green Energy shares is reported at ₹3.5, suggesting a potential listing price of around ₹111.5 per share based on the upper price band of ₹108. This indicates a modest gain of approximately 3.24% upon listing, reflecting cautious optimism among investors.
Company Financials
NTPC Green Energy has demonstrated impressive financial growth:
- Revenue Growth: The company’s revenue has surged from ₹910.42 crore in FY22 to ₹1,962.6 crore in FY24, marking a compound annual growth rate (CAGR) of 46.82%.
- Profit After Tax: The profit after tax has also seen significant growth, increasing from ₹94.74 crore in FY22 to ₹344.72 crore in FY24, representing a CAGR of 90.75%.
This financial performance underscores the company’s strong position in the renewable energy sector and its potential for future growth.
Should I Apply?
Investors considering whether to apply for the NTPC Green Energy IPO should weigh several factors:
- Strong Demand: The high subscription rates indicate robust demand from various investor segments.
- Financial Performance: The company’s impressive revenue and profit growth suggest a solid business model.
- Market Positioning: As a subsidiary of NTPC Ltd., NTPC Green Energy benefits from strong parentage and credibility in the energy sector.
Given these factors, many analysts recommend subscribing to the IPO for long-term gains.
Experts’ Opinion
Market analysts and brokerage firms have largely viewed the NTPC Green Energy IPO positively:
- Analysts from firms like Reliance Securities and SBI Securities have highlighted the company’s long-term growth potential and its strategic focus on renewable energy.
- Experts emphasize NTPC Green Energy’s aggressive expansion plans and stable revenue streams due to long-term power purchase agreements (PPAs).
Eureka Shares & Stock Brokers suggest that investors should consider subscribing to this IPO due to its strong fundamentals and market positioning.
Conclusion
The NTPC Green Energy IPO is poised to be a significant event in India’s renewable energy landscape. With strong subscription figures, positive expert opinions, and promising financials, it presents an attractive opportunity for investors looking to engage with sustainable energy initiatives.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Readers should consult financial advisors before making investment decisions.
