NTPC Green valuation was moderated based on current market sentiment: NTPC CMD Gurdeep Singh

The Rs 10,000-crore mega IPO of NTPC’s renewable energy arm NTPC Green Energy Ltd (NGEL), which opened for subscription on November 19, was initially pegged at a higher valuation, according to NTPC Ltd CMD Gurdeep Singh.

“We had a meeting with more than 100 stakeholders, investors and big institutions. The valuation and the price band they suggested was much higher. We moderated it based on the current market conditions post the US election result. Otherwise, there was much bigger demand from anchor investors as well and we found it difficult to accommodate them,” Singh said on being asked about the aggressive valuation of NGEL during an interaction with reporters in Delhi.

The price band for the IPO has been fixed at Rs 102-108 per share. Investors can bid for a minimum of 138 shares and in multiples of 138 shares thereafter. For retail investors, the minimum investment will amount to Rs 14,904, with a maximum permissible investment of Rs 1,93,752 for 13 lots.

The IPO of NGEL got subscribed 33 percent on the first day of share sale on November 19. The share sale received bids for 19,46,53,968 shares against 59,31,67,575 shares on offer, according to data available with the NSE.