NTPC Green Energy listing: What does latest GMP signal ahead of market debut?

NTPC Green Energy shares are set to make their market debut on Wednesday after the allotment for the initial public offering (IPO) was completed on Monday.
NTPC Green Energy IPO witnessed decent subscription numbers through its 3-day bidding process.
The NTPC Green Energy IPO saw decent investor interest, with an overall subscription of 2.55 times by the third day of bidding on November 22, 2024.
Among the different investor categories, the retail segment showed the highest enthusiasm, subscribing 3.59 times the allotted shares. Qualified Institutional Buyers (QIBs) closely followed, with a subscription rate of 3.51 times. However, Non-Institutional Investors (NIIs), which include high-net-worth individuals, showed comparatively less interest, with their category subscribed at 0.85 times.
The grey market premium (GMP) for NTPC Green Energy IPO has taken a hit and fallen to Rs 1 from the earlier premium of Rs 3.5 a few days earlier.
With the IPO’s upper price band set at Rs 108, the projected listing price stands at Rs 109, which is calculated by adding the GMP to the cap price. This implies a potential gain of almost 1% per share from the upper price band.
“Considering all the parameters along with decent subscription demand and followed by market sentiments, the stock can list on neutral to flat gain 0-5% range on its issue price. Allotted investors should not expect any big listing gains due to market scenario,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd said that the company boasts a robust and diversified portfolio across geographies and offtakers, which is a key strength.
“While its revenue growth trajectory has been consistent, temporary fluctuations in profitability and margins remain a concern. The IPO’s valuation, based on the PE ratio, appears aggressive, which may limit immediate upside potential. Given the long-term growth prospects in the renewable energy sector and NTPC Green Energy’s strategic position, this IPO is recommended primarily for long-term investors. Short-term traders should remain cautious due to modest GMP signals and potential valuation concerns,” she added.
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