NTPC Green Energy closes top 10% circuit on day one; enters the Rs 1 lakh crore m-cap club
After a muted listing at the institutions today (November 27), shares of the renewable energy arm- NTPC Green Energy, a subsidiary of Maharatna utility company NTPC were locked in the top 10% of the circuit/- taking the company’s im-cap to Rs. 1.03 lakh crore.
As expected the company made a muted debut, listing at a price of Rs 111.6, up a meager 3 percent, while on the NSE it started at Rs 111.5 apiece.
The IPO, which closed for registration on November 22, was oversubscribed 2.42 times, with significant demand from retail investors. 3.4 times the payment intended for them.
This Rs 10,000 crore IPO was the second largest by a major PSU with a fresh issue of 92.59 equity shares on offer. The issue price band has been fixed between Rs 102-108 per share.
The Company has come up with an investment issue in its wholly owned subsidiary, NTPC Renewable Energy (NREL) to repay/prepay, fully or partially the outstanding loan received by NREL and for other general business purposes.
Although many analysts and experts remain optimistic about the counter from a long-term perspective, they were still expecting a muted listing.
Post list view
Shivani Nyati, Head of Wealth at Swastika Investmart said, “The listing exceeded expectations, supported by a slightly improved market environment. The IPO received a moderate overall subscription of 2.55 times, indicating moderate investor interest.”
As a wholly owned subsidiary of NTPC Ltd., the company benefits from a strong and diversified portfolio across geographies and issuers. Consistent top-line growth is encouraging, although short-term fluctuations in profits and revenues remain a concern. Despite the aggressive valuations based on the PE ratio, the company’s long-term prospects in the renewable energy space make it a suitable option for patient investors with a long-term horizon and we recommend holding with a stop loss of around 110, he. added.
Experts look at the list
Zee Business Managing Editor expects the stock to make its listing close to the issue price of Rs 108. The market expert advised investors to ‘subscribe’ to the issue with a three-year perspective. For short-term investors, he advised investors to keep an appropriate stoploss below the issue price.
This is a 2-3 year story in renewable energy. Don’t expect big gains in the short term, hold on for at least 2-3 years, he suggested.
Shivani Nyati, Swastika Investmart: The company’s diversified portfolio and consistent revenue growth are strengths, but aggressive valuations and margin volatility can limit short-term upside.
Prashanth Tapse, Mehta Equities: While market sentiment and valuations may range from gains in the 0-5 percent range, NTPC Green Energy’s focus on green hydrogen, chemicals, and battery storage positions it as a player in the energy transition. India. Tapse advises long-term investors to hold on despite short-term volatility.
