Heading towards upper circuit, NTPC Green Energy shares had a modest debut on the National Stock Exchange (NSE) on Wednesday November 27, opening with a premium of over 3 percent just days after the Rs 10,000 crore issue was subscribed 2.42 times in the primary market.
The shares listed at Rs111.50 each on the NSE, representing a 3.24 percent premium over the IPO price of Rs 108.
On the Bombay Stock Exchange (BSE), NTPC Green Energy stocks were listed at Rs 111.60 per share, which is a premium of 3.33 percent.
Analysts suggest that IPO allottees might experience muted listing gains on Wednesday and indicate it could be an “opportunity for long-term investors.”
The listing price of NTPC Green Energy shares surpassed expectations from the grey market, even though the IPO’s grey market premium was flat on the day of listing. NTPC Green Energy, a ‘Maharatna’ public sector undertaking, holds a renewable energy portfolio that includes solar and wind power projects.
Funds raised from the IPO, estimated at around Rs 7,500 crore at the upper end, are intended to pay off part or all of the outstanding loans of its subsidiary, NTPC Renewable Energy Ltd (NREL), while a portion will be allocated for general corporate expenses.
In related news, NTPC announced that its green energy division has formed a 50:50 joint venture with Maharashtra State Power Generation Company Ltd. to develop, operate, and maintain renewable energy parks within the state.