NTPC Green lists at premium

NTPC Green is a new listing today morning; as against the IPO price of Rs.108, it got listed at Rs.111.60 and rose to an intraday high at Rs.122.75 and is currently trading at 121 levels.

The IPO was subscribed overall 2.4x, with QIBs portion at 3.32x, HNIs at 0.81x and Retail at 3.39x.

NTPC Green Energy, a wholly owned subsidiary of India’s largest power company NTPC Limited, has a portfolio of 3.32 GW renewable energy (RE) capacity under operation, as of 30.9.24, comprising 3.2 GW solar energy projects and 0.1 GW wind energy. 13.58 GW capacity is contracted and awarded, taking portfolio to 16.90 GW (operational + under development). BY 2032E, it targets 60 GW renewable energy capacity.

Our IPO Analysis conclusion - RE is a sun-rise sector, but NTPC Green IPO pricing may not lead to a rise in investor wealth. Aggressive pricing makes this long-awaited IPO an ‘avoid’.