NTPC Green Energy IPO: Dwindling GMP Amid Market Volatility
Ahead of its November 19 launch, NTPC Green Energy Ltd.’s initial public offering (IPO) has seen a decrease in the grey market premium (GMP), indicating cautious investor attitude. With a price range of ₹102–108 per share, the initial public offering (IPO), which is scheduled to conclude on November 22, offers new equity shares valued at up to ₹10,000 crore.
According to market watchers, the current GMP of ₹1-2 for NTPC Green Energy shares indicates modest expectations for listing gains. This represents a drop from the 2.78% premium from the previous week, reflecting the tempered excitement in a tumultuous stock market.
Long-term investors should take note of SBI Securities’ ‘Subscribe’ recommendation, which highlights the company’s strong development potential in the renewable energy sector despite the cautious outlook. Analysts said, “NTPC Green Energy Ltd is valued at an FY24 EV/EBITDA multiple of 53.4x on post-issue capital at the upper price band of ₹108.” Because of this, it is a desirable long-term investment.
By FY27, NTPC Green Energy hopes to invest ₹1 lakh crore in wind and solar energy projects, demonstrating its dedication to India’s green energy objectives. In this year’s biggest initial public offering (IPO), investors are able to apply for at least 138 shares, as well as multiples of those shares.
The IPO is a notable offering in a volatile market climate, coming after Swiggy’s ₹7,000-crore share sale. Given the company’s aggressive intentions for growth and the state of the market, investors are urged to carefully assess their alternatives.
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