Rama Krishna Sangem
NTPC Green Energy IPO listing prediction: Shares of state-owned NTPC’s renewable energy arm, NTPC Green Energy, are expected to make their debut on the bourses tomorrow, Wednesday, November 27, 2024. Market analysts remain optimistic on the long-term outlook but expect a muted listing gain for the company’s shares.
The public offering, which ended for subscription on November 22, 2024, garnered a decent response from investors, with the issue getting oversubscribed by 2.42 times, according to data from the National Stock Exchange (NSE).
Meanwhile, the unlisted shares of NTPC Green Energy were quoted at a premium of Rs 2 over the upper end of the IPO price of Rs 108, which the company has also set as the allotment price, sources tracking grey market activities revealed. Based on the current Grey Market Premium (GMP), NTPC Green Energy shares are expected to list around Rs 110 apiece, yielding a return of 1.85 per cent for its investors.
That said, here’s what analysts expect from the NTPC Green Energy IPO listing, and what they recommend:
Modest gains
Its current GMP, according to Shivani Nyati, head of wealth at Swastika Investmart, indicates expectations of a modest listing gain. She further added that the company boasts a robust and diversified portfolio across geographies and offtakers, which is a key strength.
While its revenue growth trajectory has been consistent, she believes temporary fluctuations in profitability and margins remain a concern. The IPO’s valuation, based on the PE ratio, Nyati said, appears aggressive, which may limit immediate upside potential.
Despite the sell-off mood in the market and expensive valuations, Prashanth Tapse, senior VP (Research) at Mehta Equities, said NTPC Green Energy received decent demand from NII and retail investors, while NII stayed back with low interest. With ambitious renewable energy targets, Tapse believes, the company is well-equipped to capitalise on the increasing demand for sustainable energy solutions. NTPC Green’s strategic expansion into green hydrogen, green chemicals, and battery storage further enhances its growth prospects, positioning it at the forefront of India’s energy transition.
