NTPC Green Energy GMP slips as IPO opens for subscription tomorrow: Should you subscribe?

IPO-bound NTPC Green Energy is aiming to invest up to Rs 1 lakh crore in solar and wind assets by FY27.

The grey market premium (GMP) for NTPC Green Energy Ltd's initial public offering (IPO) has declined as weak stock market sentiments weigh on investor appetite ahead of the issue's opening on November 19.

The IPO, which will remain open for subscription until November 22, comprises a fresh issue of equity shares worth up to Rs 10,000 crore. The price band for the offer has been set at Rs 102-108 per share.

According to market watchers tracking grey market trends, NTPC Green Energy shares are trading at a GMP of Rs 1-2 in the unofficial market. This indicates modest expectations for listing gains, reflecting caution amid ongoing market volatility.

NTPC Green Energy prepares for landmark IPO to fund ambitious 60 GW renewable vision

The current GMP represents a dip compared to last week's levels, when the shares commanded a premium of 2.78 percent.

The analysts at the domestic brokerage SBI Securities have given a 'Subscribe' rating to the maiden share sale by the company.

"At the upper price band of ₹108, NGEL is valued at FY24 enterprise value-EBITDA of 53.4 times on post issue capital," it said while recommending investors to subscribe to the issue at cut-off price for a long term.

Meanwhile, the company aims to invest up to Rs 1 lakh crore in solar and wind assets by FY27, according to a PTI report.

Investors will have to apply for a minimum of 138 shares and in multiples of 138 thereafter in the IPO, which is one of the biggest offerings by any companies in recent times and comes right after food delivery company Swiggy's Rs 7,000-crore share sale.

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