Business news November 19 highlights: NTPC Green IPO subscribed 33% on Day 1 of offer

The Indian stock market has been abuzz with the news of the NTPC Green Energy Limited Initial Public Offering (IPO), which opened for subscription on November 17, 2024. The IPO, which is a subsidiary of the state-owned energy giant NTPC Limited, aims to raise capital for the expansion of its green energy business. This includes solar and wind energy projects in India, which are part of the country’s ambitious renewable energy transition. On the first day of the issue, the public offering saw a significant subscription, with the issue being subscribed 33%, reflecting investor interest in green energy stocks. As is customary with any IPO, there has been considerable focus on the Gray Market Premium (GMP), which is an unofficial indicator of how the stock is likely to perform once it hits the bourses. Here’s an analysis of the NTPC Green IPO’s first-day subscription and its GMP, including what it could mean for investors looking to participate. NTPC Green Energy Limited is a wholly owned subsidiary of NTPC Limited, which is India’s largest electricity generator. The company was set up to focus on renewable energy generation, including solar, wind, and hybrid power projects. The IPO aims to raise approximately ₹2,000 crores by offering a combination of fresh equity issuance and the sale of existing shares by the parent company. The issue comprises a fresh issue of ₹1,500 crores and an offer for sale (OFS) of ₹500 crores. NTPC Green Energy is at the heart of NTPC’s strategy to pivot towards green and sustainable energy. As part of its commitment to reducing its carbon footprint, NTPC plans to increase its renewable energy capacity, which currently stands at a fraction of its total generation capacity. The company intends to use the funds raised through the IPO to expand its renewable energy projects, develop new solar and wind power plants, and further its mission to become a leader in India’s clean energy space. On the opening day of the IPO subscription, November 17, 2024, NTPC Green Energy IPO witnessed a solid response from investors, particularly from institutional and high-net-worth individual (HNWI) investors. By the end of the first day, the issue was subscribed 33%, a positive signal about the market’s appetite for green energy stocks. Subscription numbers often give a preliminary gauge of investor sentiment toward a public offering. An IPO is typically considered to be well-received if it is subscribed 1.5 to 2 times on the opening day. With a 33% subscription on Day 1, NTPC Green’s offering is off to a promising start, especially given that retail investors typically account for a large portion of the final subscription volume in IPOs. The positive subscription numbers suggest that institutional investors, including Qualified Institutional Buyers (QIBs), are showing interest, which is generally viewed as a good sign for the performance of the stock post-listing.

The post Business news November 19 highlights: NTPC Green IPO subscribed 33% on Day 1 of offer first appeared on InfluencersPro.