NTPC Green Energy IPO Day-1: Know the GMP

The highly anticipated NTPC Green Energy IPO is now live for subscriptions. This renewable energy subsidiary of NTPC Limited aims to raise ₹10,000 crore through its public issue, with the subscription window open until 22 November 2024. The GMP has dropped significantly to Rs 1 in the last few days.

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A key highlight of this IPO is the allocation of 10% of the total issue size—₹1,000 crore—exclusively for existing NTPC shareholders. Shareholders eligible for this reserved quota are those who held NTPC shares on the date of filing the Red Herring Prospectus (RHP).

Moreover, NTPC shareholders have additional options to apply under the general categories, such as retail, non-institutional, or employee quotas, provided they meet the respective eligibility criteria. This dual flexibility allows shareholders to bid under both reserved and public categories, enhancing their participation options.

Shareholder Quota: Enhancing Allotment Prospects

Since the announcement of the IPO, there has been a surge in interest from investors keen to qualify for the shareholder quota. Market analysts suggest that applying under this reserved category may improve the chances of allotment, though it doesn’t guarantee a successful bid.

The flexibility to apply across multiple categories—such as shareholder, retail, or non-institutional—boosts the likelihood of allocation. However, final allotment depends on the overall demand. If the IPO, including the shareholder quota, is heavily oversubscribed, shares will be allotted proportionately as per the terms detailed in the RHP.

Early Subscription Trends

By midday on the opening day, the IPO had garnered a subscription rate of 15%. The reserved shareholder category was 26% subscribed, while the retail portion achieved a 64% subscription rate. Non-institutional investors (NIIs), however, showed a slower response, with just 5% of their segment subscribed.

A Major Step for NTPC’s Renewable Ambitions

The NTPC Green Energy IPO marks a significant milestone in NTPC Limited’s renewable energy journey. The funds raised through this offering will likely support the company’s green energy initiatives and help strengthen its position in India’s clean energy sector.

With attractive opportunities for NTPC shareholders and a focus on sustainability, this IPO has captured the attention of a diverse range of investors. However, with demand expected to rise, participants must act swiftly to secure their bids.