The highly anticipated NTPC Green Energy IPO is set to open for public subscription on November 19, 2024, and will remain available until November 22, 2024. With a target to raise ₹10,000 crore through the issuance of 92.5 crore shares, the company has fixed the price band for its shares between ₹102 and ₹108. As investors prepare for this significant offering, understanding the grey market premium (GMP) and other key details is essential.
Current Grey Market Premium (GMP)
As of now, the GMP for NTPC Green Energy shares is approximately ₹1-2, indicating a slight premium of about 1% over the issue price. This modest premium suggests cautious optimism among investors regarding the stock’s potential performance upon listing.
IPO Details
- Issue Price Band: ₹102 – ₹108 per share
- Total Shares Offered: 92.5 crore
- Fresh Equity Sale: ₹10,000 crore
- Lot Size: Investors can bid for a minimum of 138 shares in one lot.
Financial Performance
NTPC Green Energy has shown impressive growth in its financials:
- Revenue Growth: The company’s operational revenue has grown at a compound annual growth rate (CAGR) of 46.82%, increasing from ₹910.42 crore in FY22 to ₹1,962.6 crore in FY24.
- Profit After Tax (PAT): The PAT has surged by 90.75% CAGR, rising from ₹94.74 crore in FY22 to ₹344.72 crore in FY24.
This growth trajectory positions NTPC Green Energy as a significant player in the renewable energy sector, particularly as it aims to expand its operational capacity significantly.
Important Dates for NTPC Green Energy IPO
| Event | Date |
|---|---|
| IPO Open Date | November 19, 2024 |
| IPO Close Date | November 22, 2024 |
| Basis of Allotment Date | November 25, 2024 |
| Credit to Demat Accounts | November 26, 2024 |
| Listing Date | November 27, 2024 |
These dates are crucial for investors planning their applications and anticipating trading post-listing.
Should You Apply?
Here are some factors to consider before applying for the NTPC Green Energy IPO:
- Growth Potential: With substantial revenue growth and profitability improvements, NTPC Green Energy is well-positioned to capitalize on the increasing demand for renewable energy in India.
- Market Sentiment: The current GMP indicates a positive sentiment but remains modest. Investors should consider whether this aligns with their risk appetite.
- Investment Strategy: Given that this IPO is part of a larger trend towards sustainable energy investments, it may align well with long-term investment strategies focused on green energy.
Expert Opinions
Analysts have mixed views on the upcoming IPO:
- Some experts recommend subscribing due to NTPC Green Energy’s strong financials and growth prospects.
- Others caution about potential market volatility and advise investors to consider their investment horizon and risk tolerance before participating.
Conclusion
The NTPC Green Energy IPO presents an opportunity for investors looking to tap into the growing renewable energy sector in India. With solid financial performance and a strategic plan for expansion, this IPO could be an attractive addition to investment portfolios. However, potential investors should weigh the current market conditions and expert insights before making their decisions.
Disclaimer: This article is intended for informational purposes only and should not be construed as investment advice. Readers are encouraged to conduct their own research or consult with certified financial advisors before making any investment decisions based on market trends or stock performances.
