NTPC Green Energy IPO grey market premium (GMP) has declined amid buzz about the company preparing to file its red herring prospectus (RHP).
The drop in GMP is seen as a response to broader market pressures with continued foreign institutional investor (FII) selling, lacklustre quarterly earnings and weak trends in Asian markets dampening investor sentiment. The multiple factors are also impacting liquidity in the primary market, weighing down enthusiasm for upcoming IPOs.
Mega Hyundai Motor India Limited (HMIL) initial public offer (IPO) also got a tepid response.
The shares of the company made a weak debut on the exchanges on October 22 after listing at 1.32 percent discount at Rs 1,934 against its initial public offer (IPO) price Rs 1960 on the NSE.
Afcons Infra shares made a weak stock market debut on November 4 to list at nearly 8 percent discount against its offer price.
The shares of NTPC Green are currently commanding a grey market premium (GMP) of around 9 percent, as per Investorgain and IPO Watch which track they grey market activites. The unofficial market, which monitors grey market premium trends, has reported a slight dip from the higher 25 percent GMP recorded last week.
NTPC Green Energy is a 100 percent subsidiary of NTPC. The mega PSU IPO has been on investors’ radar ever since NTPC Green Energy filed its draft red herring prospectus (DRHP) with SEBI in September.
NTPC Green was originally carved out as a separate segment focusing on the renewable energy business within the overall NTPC group portfolio of power-generation assets. All of NTPC’s renewable energy projects are now being operated and undertaken by this 100 percent subsidiary, in order to have greater focus, funding and growth.
NTPC: IPO for renewables business to unlock value in coming months
The Rs 10,000-crore public issue, expected to be one of India’s largest IPOs in 2024, will be a fresh issue of equity shares with no offer for sale by the promoter entities.
NTPC shareholders, as of the date of the red herring prospectus (RHP), will be eligible for a reserved quota, capped at 10 percent of the total issue.
NTPC Green Energy’s IPO is a key step in NTPC’s goal to achieve 60 gigawatts (GW) of renewable energy capacity by FY32. The company currently has 24 GW of the capacity in its pipeline, and it has been expanding aggressively in areas such as solar energy and green hydrogen.
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