The much-anticipated NTPC Green Energy IPO, the renewable energy subsidiary of NTPC, is scheduled to open for public subscription on Tuesday, November 19, 2024. Brokerages and market analysts have expressed a bullish outlook on the offering, broadly recommending investors subscribe for its strong long-term growth potential.
NTPC Green Energy IPO Details
The NTPC Green Energy IPO is structured as a book-built issue, raising Rs 10,000 crore entirely through the fresh issuance of 92,59,25,926 shares. The IPO price band is set between Rs 102-108 per share, with a minimum lot size of 138 shares. Retail investors would need at least Rs 14,904 to bid for one lot, based on the upper end of the price band.
Grey Market Premium Declines
Ahead of the IPO’s launch, NTPC Green Energy’s unlisted shares saw a dip in the grey market premium (GMP). On Monday, the shares were quoted at a premium of Re 1 over the upper end of the IPO price, translating to a modest GMP of 0.93%. This marks a Rs 2 decline from the Rs 3 premium observed on Friday, November 14, 2024, according to sources tracking grey market trends.
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Brokerages on NTPC Green Energy IPO
SBI Securities on NTPC Green Energy IPO
According to a report from SBI Securities, the brokerage recommends a long-term subscription to the NTPC Green Energy IPO, highlighting its attractive pricing and growth prospects. At the upper price band of Rs 108, NTPC Green Energy is valued at an FY24 EV/Ebitda multiple of 53.4x based on post-issue capital.
Also ReadNTPC Green Energy IPO opens on November 19: Here are 11 things to know before you decide to subscribe
SBI Securities projects a substantial expansion in NTPC Green Energy’s operational capacity, expecting it to rise from 3.3 GW in September 2024 to 6 GW, 11 GW, and 19 GW by FY25E, FY26E, and FY27E, respectively.
The brokerage also forecasts strong financial growth,
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