NTPC Green Energy IPO: Latest Subscription Status, GMP, and Expert Review - Should You Apply?

The NTPC Green Energy IPO, targeting a ₹10,000 crore offering, is generating strong interest, particularly from retail investors. Launched on November 19, the IPO had a 33% subscription rate on its first day, with the retail portion oversubscribed 1.33 times. The IPO, part of NTPC's green energy push, aims to raise funds for renewable energy projects and debt reduction.

Despite market fatigue from recent IPOs, the NTPC Green Energy IPO has caught attention. The first day showed healthy participation, with retail investors quickly filling their portion. The overall offering is expected to close by Friday, November 22.

NTPC Green Energy, a subsidiary of NTPC Ltd., is a key player in India’s renewable energy sector and is on track to expand its non-fossil fuel capacity significantly by 2032. The IPO consists only of fresh equity issuance, with ₹7,500 crore allocated to NTPC Renewable Energy Limited (NREL) for project investments and debt repayment.

As for the grey market premium (GMP), NTPC Green Energy shares are trading at a ₹0.80 premium today, with a potential listing price of ₹108.8. This signals a modest upside potential, although the GMP has been trending downward in recent sessions, with the highest recorded at ₹25.

Experts suggest a "subscribe for the long-term" stance on this IPO, with growth projections looking strong. Brokerages like Indsec Securities and SBICAP Securities highlight NTPC Green Energy’s potential, though the IPO is considered expensive compared to its listed peers like Adani Green Energy.

Should You Apply?
The IPO shows promise for long-term investors looking to bet on India’s renewable energy growth. However, consider the high valuation compared to similar companies before applying.