NTPC Green stock zooms 14% post steady debut; Should you book profit?

NTPC Green Energy shares posted a lacklustre D-Street debut with listing at Rs 111.60 apiece on the BSE, and Rs 111.50 apiece on the NSE on Wednesday

NTPC Green Energy IPO listing today: Shares of D-Street debutant NTPC Green Energy, the renewable energy subsidiary of NTPC, climbed as much as 13.65 per cent to hit the upper circuit of 122.75 within half an hour of its listing. Similarly, on the National Stock Exchange (NSE), the stock zoomed 13.56 per cent to hit the upper circuit of Rs 122.65.    

Earlier today, NTPC Green Energy shares posted a muted start with listing at Rs 111.60 apiece on the BSE, and Rs 111.50 on the NSE, reflecting a premium of Rs 3.33 and 3.24 per cent, respectively, over its issue price of Rs 108.

 

 

 

As expected, the NTPC Green Energy listing was in line with a flat debut, said Prashanth Tapse, Senior VP (Research) at Mehta Equities. "The valuations and subdued market mood justify the listing." 

 

For long-term investors, Tapse believes NTPC Green Energy is a great opportunity to invest in a leading player in India’s renewable energy sector, backed by the formidable resources and expertise of NTPC as a long-term strategy. With ambitious renewable energy targets, the company, Tapse said, 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,' he added.

 

Considering all the parameters, Tapse advised allotted investors to hold for the long term despite short-term market volatility. For non-allotted investors, he suggested accumulating shares if the listing is around or below the issue price. 

Shivani Nyati, Head of Wealth at Swastika Investmart, on the other hand, said the listing surpassed modest expectations, supported by slightly improved market sentiment. As a wholly-owned subsidiary of NTPC, Nyati believes the company benefits from a robust and diversified portfolio across geographies and off-takers. Its consistent top-line growth is encouraging, though temporary fluctuations in profitability and margins remain a concern to her.

 

"Despite the aggressive pricing 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," said Nyati. She recommended holding the NTPC Green Energy stock with a stop-loss at around Rs 110.

    

NTPC Green Energy IPO details, subscription metrics

NTPC Green Energy IPO consisted entirely of a fresh issue of 92.59 crore shares, offered in a price band of Rs 102-Rs 108 per share with a lot size of 138 shares. The issue received decent demand, closing with an oversubscription of 2.42 times.

 

Retail Individual Investors (RIIs) led the subscription with bids for 3.44 times the shares reserved for them. Qualified Institutional Buyers (QIBs) followed with 3.32 times subscription. Non-Institutional Investors (NIIs) subscribed to only 0.81 times their quota. Meanwhile, the reserved portions for employees and shareholders were subscribed 0.80 times and 1.60 times, respectively, as per NSE data.

 

About NTPC Green Energy 

NTPC Green Energy (NGEL) is part of NTPC’s green energy transition strategy. The company focuses on both organic and inorganic growth to achieve its target of 60 GW of renewable energy capacity by FY32.

 

NGEL participates in competitive bidding, tenders, and Ultra Mega Renewable Energy Power Parks (UMREPP), with plans to strengthen its position in the green energy sector in India and internationally