NTPC Green Energy IPO day 3: GMP, subscription status, review. Apply or not?

[{"selector":"#anim-ab503e75-7ad9-4926-a896-b2fd09880ab6","keyframes":{"opacity":[0,1]},"delay":0,"duration":3000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] The initial public offering (IPO) of NTPC Green Energy has attracted decent buying interest. By 4:30 pm on Friday, the issue had been subscribed to 2.40 times.

[{"selector":"#anim-4d3dde61-c415-4dc3-abd1-ea618f7e2df4","keyframes":{"opacity":[0,1]},"delay":0,"duration":3000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] The ₹10,000 crore book-built issue, priced in the range of ₹102 to ₹108 per share, opened for subscription on Tuesday, November 19, and closes today, Friday, November 22.

[{"selector":"#anim-d53c9373-33bf-4a36-a21a-9b53838395a8","keyframes":{"opacity":[0,1]},"delay":0,"duration":3000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] On November 19, the first day of the issue, NTPC Green Energy IPO GMP stood at ₹3, but it dropped to ₹0.80 by the second day.

[{"selector":"#anim-7eb6f8d0-b6b2-447a-b3df-8e0ca7d787a2","keyframes":{"opacity":[0,1]},"delay":0,"duration":3000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] According to BSE data, by 4:30 pm on Friday, the issue had been subscribed to 2.40 times, with the retail portion booked 3.36 times, the NII portion subscribed 0.80 times, and the QIP segment booked 3.32 times.

[{"selector":"#anim-b60f12dc-7a4d-4f03-8e16-031be73edf43","keyframes":{"opacity":[0,1]},"delay":0,"duration":3000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] NTPC Green Energy IPO was subscribed 93 per cent by the end of the second day of subscription. The segment reserved for retail investors saw the highest subscription at 2.38 times

[{"selector":"#anim-3dc83a46-2d86-4889-b4c9-a5cbbfd6bb41","keyframes":{"opacity":[0,1]},"delay":0,"duration":3000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] The IPO received cumulative bids for 54,97,38,180 shares against 59,31,67,575 offered. On the first day, the issue was booked 33 per cent.

[{"selector":"#anim-14766c18-f014-4bc2-8500-eea3c4534716","keyframes":{"opacity":[0,1]},"delay":0,"duration":3000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] "If we attribute annualized FY25 earnings to post-IPO fully diluted equity base, then the asking price is at a P/E (price-to-earning) of 257.14 and based on FY24 earnings, the P/E stands at 263.41.

[{"selector":"#anim-9e119a1f-6bd3-46fb-b98b-ee7f08c73e7d","keyframes":{"opacity":[0,1]},"delay":0,"duration":3000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] the issue appears aggressively priced. However, considering its current established capacities and future expanded capacities, this is a pure long-term story.