NTPC Green Energy IPO Day 3 GMP updates: Issue subscribed 2.42x, retail portion at 3.44x

NTPC Green Energy IPO subscription highlights

Qualified Institutional Buyers: 3.32 times

Non Institutional Investors: 0.81 times

Retail Individual Investors: 3.44 times

Employees: 0.80 times

Shareholders: 1.60 times

Total: 2.42 times

FM: Brick and mortar retail is being challenged by quick commerce and we need to hand hold and support our brick and mortar retail. No doubt. But use this (quick commerce) to brand India as a destination of innovative solutions to modern, urban needs. This will serve as an incentive to scale up internationally.

Finance Minister Sitharaman: India's businesses, particularly the startups, especially the quick commerce for instance are truly one of a kind innovation that only India has. But that's not to say the brick and mortar retail is not doing fine, they are being challenged, I recognize that.

Finance Minister Sitharaman on November 22 pitched the idea to create a Bharat FDA -- food and drug administration that provides global standards or benchmarks for products during an event at India Ideas Conclave 2024.

India well on its way to becoming the third largest economy in the world and is prepared to meet global challenges, says Piyush Goyal. The commerce minister also said Indian rupee has held its position as one of the least volatile among major currencies.

Goyal virtually speaking at the India Ideas Conclave 2024.

NTPC Green Energy IPO subscription highlights

Qualified Institutional Buyers: 3.32 times

Non Institutional Investors: 0.81 times

Retail Individual Investors: 3.39 times

Employees: 0.78 times

Shareholders: 1.58 times

Total: 2.40 times

Bitcoin flirted with a run toward the landmark $100,000 level, buoyed by expectations of friendly US regulations and expanding investor interest courtesy of President-elect Donald Trump’s support for crypto.

The largest digital asset traded at $98,344 as of 6:02 a.m. Friday in New York after earlier hitting a record $99,505. The crypto market as a whole has gained about $1 trillion since Trump’s Nov. 5 election win.

Shares of six Adani group firms bounced back on Friday from the previous day's sharp drubbing, in tandem with a bull rally in the equity market wherein the BSE benchmark Sensex zoomed 1,961 points.

The stock of Ambuja Cements jumped 3.50 per cent, ACC climbed 3.17 per cent, the group's flagship firm Adani Enterprises advanced 2.16 per cent, Adani Ports rose 2.05 per cent, Adani Total Gas shot up by 1.18 per cent, and NDTV edged up 0.65 per cent on the BSE.

In contrast, shares of Adani Green Energy tanked 8.20 per cent, Adani Energy Solutions slumped 6.92 per cent, Adani Power declined 3.23 per cent, and Adani Wilmar slipped 0.73 per cent.

Most of the group stock fell during the morning trade after billionaire Gautam Adani was charged by US prosecutors for allegedly being part of a scheme to pay USD 265 million (about Rs 2,200 crore) bribe to Indian officials in exchange for favourable terms for solar power contracts.

Central Bank of India on Friday said it has got approval from the Reserve Bank to enter the insurance business through a joint venture with Generali group under FGIICL and FGILICL.

In a filing to stock exchanges, the state-owned bank said the RBI accorded the approval vide a letter dated November 21, 2024.

"...we would like to inform that the Reserve Bank of India (RBI) vide its letter dated 21st November 2024 has approved the bank's entry in the insurance business through a joint venture with Generali group under FGIICL and FGILICL, subject to continuous compliance of conditions stipulated by it and approval of IRDAI, the sectoral regulator," the filing said.

In October, the Competition Commission of India (CCI) had cleared the Central Bank of India's proposed acquisition of stakes in Future Generali India Insurance Company Ltd (FGIICL) and Future Generali India Life Insurance Company Ltd (FGILICL).

The broking industry is experiencing a shift towards technology, with 83.6 per cent of stock brokers planning to shore-up their IT budgets in 2024-25 to focus on artificial intelligence and algorithmic trading to boost efficiency and customer experience,  as per the survey conducted by ANMI among its 900 members.

Of these, 42 per cent brokers are looking to increase the budget by 20 per cent, according to the StockTech survey 2024-25 released on Friday.

Moreover, the emphasis on technologies such as Artificial Intelligence (AI), algorithmic trading and blockchain is driving brokers to recruit skilled professionals in these fields with 66 per cent of broking firms surveyed intending to increase their IT manpower or recruit new talent.

• Qualified Institutional Buyers (QIBs) - 3.32 times
• Non Institutional Investors(NIIS) - 0.80 times
• Retail Individual Investors (RIIs) - 3.30 times
• Employee Reserved - 0.76 times
• Reservation Portion Shareholder - 1.53 times
• Total - 2.38 times

The initial share sale of Enviro Infra Engineers has received healthy demand on the first day of bidding, i.e. November 22, subscribing 1.63 times with participation from all categories of investors. The improved market sentiment, and healthy financial performance seem to be supporting the issue. The water and wastewater management solutions company targets to raise Rs 650 crore through its maiden public issue, at the upper end of price band of Rs 140-148 per share. The IPO is a mix of fresh issue of equity shares worth Rs 572 crore, and an offer-for-sale of Rs 78 crore worth shares by promoters. (Read More)

Major concerns have been observed in the small-and-medium enterprises segment of the capital market and therefore the role of regulation is critical, said Ashwani Bhatia. The Whole-time Member of the Securities and Exchange Board of India (SEBI) was speaking at the Corporate Governance Summit on November 21. Bhatia, in his speech said, "There are major concerns that have been observed in this (SME) segment of the capital market." (Read More)

S Krishnan emphasizes that India is still in the innovation phase of AI development and that this should be considered when formulating regulations. The second edition of the Global AI Conclave is set to be a ground-breaking event, bringing together industry leaders, innovators, and policymakers to discuss the transformative power of AI.  (Check live updates)

• Northvolt's CEO and co-founder Peter Carlsson is stepping down, the Swedish maker of battery cells for electric vehicles said on Friday, one day after the group filed for U.S. Chapter 11 bankruptcy protection.
• Northvolt in a matter of months this year went from being Europe's best shot at a home-grown electric-vehicle battery champion to racing to stay afloat, hobbled by production problems and as funding ran out.
• It now needs to raise between $1 billion and $1.2 billion in order to restore its business, Carlsson told reporters. (Reuters)

Asia-focused private equity firm PAG has signed definitive agreements to acquire a substantial majority stake in Advent International- promoted Manjushree Technopak, in a transaction with an enterprise value around $850 million-$950 million for the entire packaging solutions firm, multiple industry sources in the know told Moneycontrol. (Read More)

• India will offer up to $5 billion in incentives to local electronics companies to make components for gadgets from mobiles to laptops, two government officials said, in a bid to bolster the burgeoning industry and wean off supplies from China.
• India's electronic production has more than doubled in the last six years to $115 billion in 2024, led by growth in mobile manufacturing by global firms such as Apple and Samsung. It is now the world's fourth-largest smart phone supplier.
• But the sector faces criticism for its heavy reliance on imported components from countries such as China. (Reuters)

• Qualified Institutional Buyers (QIBs) - 3.25 times
• Non Institutional Investors(NIIS) - 0.65 times
• Retail Individual Investors (RIIs) - 3.13 times
• Employee Reserved - 0.72 times
• Reservation Portion Shareholder - 1.42 times
• Total - 2.27 times

• The Indian central bank, in a rare move, instructed some banks to cut long positions on the dollar-rupee pair on Friday, seeking to reduce speculative positions with the currency at a record low, four bankers directly familiar with the development told Reuters.
• The Reserve Bank of India's financial market regulations department informally communicated the instructions to banks, the bankers said.
• The rupee weakened to a record low of 84.5075 per U.S. dollar earlier in the day, pressured by portfolio outflows and a stronger greenback. (Reuters)

• Valuation Analysis:
• Based on FY25E annualized earnings and fully diluted post-IPO paid-up capital:Price-to-Book (PB): 4.96 times
• Price-to-Earnings (PE): 259.56 times
• The valuation appears aggressively priced.
• Growth Potential:
• The company has established capacities and plans for future expansions.
• This IPO is positioned as a long-term growth story.
• Key Strengths:
• Strong parentage from NTPC.
• Low operating costs.
• Diversified capacity portfolio.
• Access to lower-cost capital.
• Recommendation:
• Given the tailwinds from capacity additions in the renewable sector and the company’s strategic positioning, the IPO is recommended with a "subscribe for long term" rating by Anand Rathi.

• With the US filing civil and criminal charges against billionaire Gautam Adani and seven others over a multi-million-dollar bribery scheme, a prominent attorney here has said that the case could escalate significantly, potentially leading to arrest warrants and even extradition attempts.
• Adani, India's second-richest man, and seven others, including his nephew Sagar Adani, have been charged by the US Department of Justice with paying bribes to unidentified officials of state governments in Andhra Pradesh and Odisha to buy expensive solar power, potentially earning more than USD 2 billion in profit over 20 years. (PTI)

• Andhra Pradesh BJP president D Purandeswari on Friday said the allegations emanating from the US against the Adani Group raises serious questions and claimed that all those linked to these allegations are associated with the Congress party.
• Business tycoon and Adani Group chairman Gautam Adani has been charged by US prosecutors over his role in an alleged years-long scheme to pay USD 250 million bribe to Indian officials in exchange for favourable terms for solar power contracts, an allegation refuted by the Indian conglomerate. (PTI)

• India’s capital markets regulator is looking into whether the Adani Group violated rules mandating the disclosure of market-moving information, according to people with knowledge of the matter.
• The Securities and Exchange Board of India has asked officials at the stock exchanges if Adani Green Energy Ltd. failed to properly disclose the US Justice Department’s investigation into bribery allegations, the people said, asking not to be identified as the details are private. The process of fact-finding is expected to continue for two weeks following which Sebi could decide if it wants to open a formal investigation, one of the people said. (Read More)

• Some global banks are considering temporarily halting fresh credit to India's Adani Group but staying put with existing loans following US prosecutors' indictment of its billionaire founder Gautam Adani for fraud, sources said.
• US prosecutors have charged eight people, including Adani chair Gautam Adani, with agreeing to pay about $265 million in bribes to Indian government officials to obtain contracts and develop India's largest solar power plant project.
• The crisis is the second in two years to hit the ports-to-power conglomerate founded by Adani, 62, one of the world's richest people. Adani Group has said the allegations made by the U.S. authorities were "baseless and denied". (Read More)

• Bain Capital-backed Kioxia's market value is seen around 750 billion yen ($4.85 billion) in its initial public offering, a regulatory filing showed on Friday.
• The IPO will have a deal value of about 100 billion yen ($645.45 million) excluding overallotment.
• Bain and Toshiba will sell shares in the IPO. Separately, Kioxia will issue new shares, raising 27.7 billion yen.
• Kioxia set an indicative price of 1,390 yen for both the secondary offering and new shares, the filing showed. (Reuters)

• India has been scrambling to meet its clean energy targets and has ramped up investments in renewable energy and expanded capacity. As per Moody's Ratings, it has to spend $385 billion by 2030 to meet its targets after it fell short in 2022.
• Investors are also positive on the sector and are betting on its IPO due to hefty long-term demand and support from its stronger parent, state-owned power producer NTPC, said Prashanth Tapse, Senior Vice President of Research at Mehta Equities. (Reuters)

On the final day of the NTPC Green Energy IPO, retail investors have driven a subscription surge, with the Retail Individual Investors (RII) portion being subscribed 2.81 times the shares allocated to this category. This strong participation reflects heightened interest and confidence among retail investors in the company's prospects, even as overall subscription trends moderate across other investor segments.

• India's Adani Group, whose billionaire chairman has been indicted for fraud by U.S. prosecutors, is facing accusations of racism at its Australian coal unit after an Aboriginal group filed a complaint with the country's Human Rights Commission.
• The Nagana Yarrbayn Wangan & Jagalingou Cultural Custodians in Queensland state said it filed a complaint alleging serious racial discrimination by the unit, Bravus Mining and Resources, earlier this week.
• The complaint details how Adani employees sought to “verbally and physically obstruct and prevent” members of the Aboriginal group from accessing springs near Adani's Carmichael coal mine “in order to perform cultural rites and share cultural knowledge”, the group said in a statement. (Reuters)

NTPC Green Energy's public offer is the biggest PSU offer this year. In fact, this is the biggest PSU offer since 2022 when state-owned Life Insurance Corporation went public with its Rs 21,000 crore mega listing.

According to the data by the National Stock Exchange, the share sale received bids for 59.12 crore shares against 59.31 crore shares on offer, as per NSE data. (Read More)

• Qualified Institutional Buyers (QIBs) - 0.75 times
• Non Institutional Investors(NIIS) - 0.39 times
• Retail Individual Investors (RIIs) - 2.63 times
• Employee Reserved - 0.49 times
• Reservation Portion Shareholder - 1.13 times
• Total - 1.00 times

• Formula One has opened negotiations with broadcaster ESPN over its next U.S. media rights deal with one year left on the existing contract, the Financial Times said on Thursday.
• Formula One and ESPN are locked in talks during an exclusivity period that expires before the end of the year, the FT report said, citing two people with direct knowledge of the matter.
• Even if an agreement is not reached by the end of this year, Liberty Media owned F1 and Disney's ESPN could still strike a deal next year, the report said, adding that this would, however, expose the broadcaster to competition for the screening rights.
• F1 and ESPN did not immediately respond to Reuters request for comments. (Reuters)

• India's business activity rose at its fastest pace in three months in November, helped by an improving services industry and record job creation, but output inflation spiked to a near 12-year high, a survey showed.
• The findings are likely to add to economic growth in the ongoing festive quarter which is expected to pick up thanks to a rebound in private consumption, despite Asia's third-largest economy reporting its highest retail inflation in 14 months.
• HSBC's flash India Composite Purchasing Managers' Index, compiled by S&P Global, rose to 59.5 this month from October's final reading of 59.1, taking the expansionary streak to 40 months. (Reuters)

• British consumers have turned less pessimistic following the government's first budget and the U.S. presidential election and they are showing more appetite for spending in the run-up to Christmas, according to a survey published on Friday.
• The GfK Consumer Confidence Index, the longest-running measure of British consumer sentiment, rose to -18 in November, its highest since August and up from -21 in October which was its lowest since March. (Reuters)

On the last day, NTPC Green Energy is witnessing brisk subscription trend. As per the BSE, the issue has been subscribed 99% overall. If we look at the retail investors' data, RIIs have oversubscribed the issue 2.59x so far.

• HSBC India Manufacturing PMI (Nov): 57.3 (prev: 57.5)
• HSBC India Services PMI (Nov): 59.2 (prev: 58.5)

Onyx Biotec shares listed with about 11 percent discount below it IPO price on the NSE SME platform on November 22, Friday. The Punjab-based company manufactures sterile water for injections. The shares of the company were listed at Rs 54.05 per share on the NSE SME against its IPO price of Rs 61 at a discount of 11.39 percent. (Read More)

The mega IPO of NTPC Green Energy closes today, with overall subscription reaching 97% as per Bombay Stock Exchange data. Despite strong demand from retail investors, the grey market premium for NTPC Green Energy has dropped to zero, indicating a likely flat listing on November 27.

• Zinka Logistics shares made a modest stock market debut on the National Stock Exchange (NSE) at a premium of about 3 percent on November 22.
•  BlackBuck shares were listed at Rs 280.90 per share on the NSE, a premium of 2.89 percent.
•  Shares of the company were listed at Rs 279.05 apiece on the BSE, a premium of 2.2 percent. (Read More)

S&P Global Ratings has cut its outlook on three Adani Group entities -- Adani Ports and SEZ Ltd, Adani Green Energy Ltd (AGEL RG2) and Adani Electricity Mumbai Ltd, Adani Ports and Special Economic Zone Ltd -- to negative, in a rating action on five Adani Group entities. The rating firm cited potential risks to Adani Group’s cash flows, access to funding, funding costs and governance, following bribery charges filed in the US against founder Gautam Adani. (Read More)

Rupee opens flat at 84.49/$ vs Thursday’s close

Mahanagar Gas (MGL) has increased the price of CNG by ₹2 per kg, bringing it to ₹77 per kg, effective November 22. The price hike comes shortly after the Maharashtra and Jharkhand elections and follows a recent reduction in APM gas supply by GAIL India to city gas distribution (CGD) players like IGL and MGL. On November 16, the government reduced the supply of low-priced natural gas from old fields to city gas retailers by up to 20%, following a 21% cut announced on October 16. (Read More)

Asserting that the relationship between India and the US is built on a strong foundation, the White House has expressed confidence that it can navigate the ongoing crisis surrounding bribery charges against Indian billionaire Gautam Adani. At her daily news conference, White House Press Secretary Karine Jean-Pierre told reporters on Thursday that the administration is aware of the charges against Adani. "Obviously we're aware of these allegations, and I would have to refer you to the SEC (Securities and Exchange Commission) and DOJ (Department of Justice) about the specifics of those allegations against the Adani Group," she said. "What I will say is on the US and India relationship, we believe that it stands on an extremely strong foundation anchored in ties between our people and cooperation across a full range of global issues," Jean-Pierre said. (PTI)

• Qualified Institutional Buyers (QIBs) - 0.75 times
• Non Institutional Investors(NIIS) - 0.34 times
• Retail Individual Investors (RIIs) - 2.38 times
• Employee Reserved - 0.40 times
• Reservation Portion Shareholder - 1.01 times
• Total - 0.93 times

• Focus Areas: Investing in hydrogen, green chemicals, and battery storage solutions, along with supporting technologies.Strategic Projects: Established an electrolyser partnership.
• Developing a green hydrogen center in Pudimadaka.
• Renewable Energy Expansion: Plans to deploy grid-scale battery storage to complement solar and wind power generation.Key Initiatives: Emphasizing robust and dispatchable renewable energy (FDRE) and round-the-clock (RTC) solutions.

• Bitcoin flirted with a run toward the landmark $100,000 level, buoyed by expectations of friendly US regulations and expanding investor interest courtesy of President-elect Donald Trump’s support for crypto.
• The largest digital asset traded at $98,550 as of 7:03 a.m. Friday in Singapore after briefly scaling a record $99,000 on Thursday in the US. The crypto market as a whole has gained about $1 trillion since Trump’s Nov. 5 election win. (Read More)

Execution Strengths: Strong execution capabilities supported by robust parent backing and favorable industry growth trends.

Growth Opportunities: Focus on Battery Energy Storage System (BESS) positions the company for future growth.

Valuation Concerns: The IPO is priced aggressively compared to listed peers trading at an EV/EBITDA of 38-40x.

Brokerage Recommendation: Rated as "Subscribe for Long-Term" due to growth potential despite valuation concerns.

As per the regulatory norms, a single qualified institutional buyer can invest up to 50% of IPO size.

Investors will keenly watch whether Adani group stocks will recover on Friday, November 22, or extend their dramatic slide following bribery charges against Gautam Adani filed in a US court by federal prosecutors. Previously, on November 21, Adani Group’s listed firms suffered a combined market capitalisation loss of Rs 2.2 lakh crore, marking one of the steepest single-day declines in the group’s history. Shares of flagship Adani Enterprises plunged 23 percent to close at Rs 2,184, after hitting an intraday low of Rs 2,155. (Read More)

• Subsidiary of NTPC: The company operates in a high-growth segment and leverages NTPC's extensive sector experience, showcasing significant future potential.
• Strong Fundamentals:
• Outperforms peers in revenue growth, profit margins, and leverage ratios.
• Challenges:
• Lower Capacity Utilization Factor (CUF): Efficiency in electricity generation for solar and wind projects is below competitors.
• Overvaluation Concerns: The company's price-to-earnings (P/E) ratio indicates overvaluation compared to peers, raising doubts about long-term wealth creation.
• Investor Advisory: Given these factors, investors are advised to avoid the IPO.

Quick commerce unicorn Zepto has continued its fundraising momentum with a $350 million round, its third in five months, led by Motilal Oswal’s Private Wealth division. The round included participation from several high-net-worth individuals (HNIs) and family offices (FOs), as the startup aims to increase domestic shareholding in preparation for a potential listing next year. (Read More)

On the last day of the subscription, there are reports coming in that Life Insurance Corporation of India is likely to make additional bid in the mega IPO of NTPC Green Energy. According to a report by NDTV Profit, LIC is likely to make additional bids. It should be noted that LIC had already participated in the anchor round prior to the IPO.

The Rs 10,000 crore NTPC Green Energy IPO consists entirely of a fresh issue of new equity shares, with no allocation for an offer-for-sale (OFS).

The Qualified Institutional Buyers (QIBs) segment has been subscribed 75%, while the Non-Institutional Investors (NIIs) portion has reached 34% subscription so far.

The IPO of government-owned NTPC Green Energy opened for subscription on Tuesday, November 19, and will close today, November 22. By the end of Day 2, the issue was 93% subscribed, with retail investors subscribing 2.38 times the shares offered to them.

Good morning and welcome to our live coverage of today's big business news from India and around the world. We start with the last day rush for the subscription of the Rs 10,000-crore mega public issue by Maharatna company NTPC Green Energy.