NTPC Green Energy IPO and GMP Today : Everything You Need to Know! Is It a Good Take for Investors? IPO closes on November 22, 2024

NTPC Green Energy IPO and GMP

The NTPC Green Energy IPO is a major offering in India’s renewable energy sector, set to raise ₹10,000 crores through a price band of ₹102 to ₹108 per share. The IPO opens on November 19, 2024, and closes on November 22, 2024. It includes a fresh issue of ₹10,000 crores and is available for retail, QIB, and NII investors.

The much-anticipated NTPC Green Energy IPO is here, opening doors for investors eager to participate in India’s green energy transformation. With significant financial backing, a promising growth trajectory, and strong market interest, this IPO is set to make waves. Here’s a complete breakdown of the NTPC Green Energy IPO, including details on dates, price band, investor segments, and financial highlights.

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NTPC Green Energy IPO Key Dates and Details

• IPO Open Date: November 19, 2024
• IPO Close Date: November 22, 2024
• IPO Allotment Date: November 25, 2024
• Listing Date: November 27, 2024
• Price Band: ₹102 to ₹108 per share
• Face Value: ₹10 per equity share
• Issue Size: ₹10,000 crores (comprising a fresh issue of ₹10,000 crores)
• Lot Size: Minimum 138 shares (₹14,904), maximum 13 lots for retail investors

NTPC Green Energy IPO Allocation Quotas

• Retail Investors: 10%
• Qualified Institutional Buyers (QIB): 75%
• Non-Institutional Investors (NII): 15%
• Special Shareholder Quota: Reserved for NTPC shareholders

NTPC Shareholder Quota Explained

Eligible NTPC shareholders as of November 12, 2024 can apply under the shareholder quota. Investors holding even one share of NTPC qualify, with a maximum application amount of ₹2 lakhs. Shareholders can combine their applications with other categories like retail or HNI, maximizing their chances of allotment.

Financial Performance Highlights

NTPC Green Energy has shown remarkable financial growth, highlighting its strong operational efficiency and expanding renewable energy capacity:

Metric	FY 2023	FY 2024	June 2024 (Quarter)
Revenue (₹ Cr)	₹170.63	₹2,037.66	₹607.42
Profit After Tax (₹ Cr)	₹118.09	₹1,549.46	₹138.61
Assets (₹ Cr)	₹18,431.40	₹27,206.42	₹28,775.40

With an EBITDA margin of 88.99% and a PAT margin of 17.56%, NTPC Green Energy outperforms many peers in profitability.

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NTPC Green Energy’s Market Lot

The IPO is accessible to retail, HNI, and institutional investors, with minimum and maximum lot sizes:

Investor Type	Lot Size	Shares	Investment Amount (₹)
Retail Minimum	1	138	₹14,904
Retail Maximum	13	1,794	₹1,93,752
S-HNI Minimum	14	1,932	₹2,08,656
B-HNI Minimum	68	9,384	₹10,13,472

Why This IPO Stands Out

1. Sector Leadership: NTPC Green Energy is a leader in India’s renewable energy sector with a diversified portfolio of solar, wind, and hybrid projects.
2. Robust Parentage: Backed by NTPC Limited and the Government of India, the company benefits from significant resources and expertise.
3. Sustainability Goals: Aligns with India’s goal of achieving 500 GW of renewable energy capacity by 2030.
4. Attractive Valuation: Competitive pricing, strong financials, and growth potential make it an appealing long-term investment.

Risks to Consider

1. Market Volatility: Stock market uncertainties can impact listing performance.
2. High Debt Levels: The company has a debt-to-equity ratio of 1.98, requiring careful financial management.
3. Regulatory Hurdles: Policy changes in the renewable energy sector can affect project timelines and returns.

How to Apply for the IPO

1. Online (ASBA Method): Log in to your bank or trading platform, select the IPO section, and submit your bid.
2. Offline: Fill out the application form through a registered broker.
3. UPI Payment: Use UPI-enabled apps for seamless application.

Comparison with Peers

Company	EPS	PE Ratio	RoNW (%)	Revenue (₹ Cr)
NTPC Green Energy	₹0.73	N/A	5.53%	₹2,037.66
Adani Green Energy	₹6.21	288.36	12.81%	₹9,220.00
ReNew Energy Global	₹9.94	52.87	3.94%	₹8,194.80

NTPC Green Energy GMP Today

NTPC Green Energy IPO GMP Live Rates

The Grey Market Premium (GMP) and Kostak rates for the NTPC Green Energy IPO provide insights into investor demand and potential listing performance. Below is the day-by-day breakdown of the GMP, Kostak, and subject-to rates:

Date	IPO GMP (₹)	GMP Trend
20 November 2024	₹1	Neutral
19 November 2024	₹1	Neutral
18 November 2024	₹2	Slight Drop
16 November 2024	₹3	Stable
15 November 2024	₹3	Stable
14 November 2024	₹3	Stable
13 November 2024	₹3	Stable
12 November 2024	₹10	Declining
11 November 2024	₹24	Declining
9 November 2024	₹30	Declining
8 November 2024	₹-	No Activity

Analysis of Trends

1. Early High Demand:
   • GMP started strong at ₹30 on 9 November 2024, with Kostak rates at ₹500 and subject-to rates at ₹1,300 on 12 November 2024.
   • High premiums indicated initial enthusiasm among investors.
2. Steady Decline:
   • By 13 November 2024, GMP dropped to ₹3, signaling reduced speculative interest.
   • This downward trend continued, with GMP stabilizing at ₹1 by 20 November 2024.
3. Investor Sentiment:
   • The declining GMP reflects cautious sentiment, possibly due to market volatility or concerns about valuation.
   • However, the IPO’s fundamentals and sector prospects remain promising for long-term investors.

Key Takeaway

While the NTPC Green Energy IPO GMP shows a declining trend, long-term investors should focus on the company’s robust financials and its leading position in the renewable energy sector rather than short-term premium fluctuations.

Conclusion

The NTPC Green Energy IPO represents a significant step in India’s transition to renewable energy. With a strong financial foundation, government backing, and favorable market conditions, the IPO offers a compelling opportunity for both retail and institutional investors. While the prospects are bright, investors must weigh the risks and align their investment strategy accordingly.

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