NTPC Green Energy IPO: The grey market premium or GMP suggests a lacklustre debut for NTPC Green Energy shares on Wednesday, November 27. The allotment for NTPC Green Energy's initial public offering (IPO) has already been finalised on November 26. The issue opened for subscription on November 19 and closed on November 22.
GMP for NTPC Green Energy IPO stands at +1.5. This indicates that NTPC Green Energy shares are being traded at a premium of ₹1.5 over the upper band of the issue price of ₹108.
This also indicates that market participants are not expecting much listing gains since they see NTPC Green Energy shares listing at ₹110, just 1.39% higher than the upper band of the IPO.
NTPC Green Energy IPO was a book-built issue of ₹10,000 crore and involved entirely a fresh issue of 92.59 crore shares. The price band in which NTPC Green Energy shares were being offered to investors was ₹102-108.
The net proceeds raised from the NTPC Green Energy IPO will be utilised for investment in the wholly-owned subsidiary, NTPC Renewable Energy Limited (NREL), for repayment/prepayment, in full or in part of certain outstanding borrowings availed by NREL. Some proceeds will also be utilised for general corporate purposes.
NTPC Green Energy Limited, a wholly-owned subsidiary of NTPC Limited, was incorporated in April 2022. NTPC Green is a renewable energy company that specialises in using both organic and inorganic methods to complete projects.
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