Government company will be listed in the stock market tomorrow, check GMP price

NTPC Green IPO GMP: NTPC Green, a subsidiary of state-run power company NTPC, is going to be listed on the Indian stock market on Wednesday, November 27. The IPO (Initial Public Offering) of this company was open from November 19 to November 22, through which NTPC Green has raised a total of Rs 10,000 crore. However, this IPO did not get much response from investors, as the figures show.

NTPC Green IPO gets subscription

According to NSE (National Stock Exchange) data, NTPC Green's IPO received a total subscription of 2.42 times, which is a relatively average figure. Under this, the response of investors in different categories varied:

Qualified Institutional Buyers (QIBs): Investors in this category subscribed a total of 3.32 times.

Non-Institutional Investors (NIIs): Here 0.81 times subscription was seen, which was relatively low.

Retail Investors: Retail investors subscribed to the IPO 3.44 times, which was a good number.

Employee Category: This category got only 0.88 times subscription.

Thus, if seen, special interest in the IPO came from retail and QIB investors, while less response was seen in NII and employee category.

Price Band and Lot Size

NTPC Green had fixed a price band of Rs 102 to Rs 108 for its IPO. This price band was for each share of the company with a face value of Rs 10. For employees, the company also gave a discount of Rs 5 on each share. A total of 92,59,25,926 fresh shares were issued in this IPO. One lot for retail investors contained 138 shares, valued at Rs 14,904. Retail investors could bid for a maximum of 13 lots (1794 shares).

Slow demand in the grey market

The demand for NTPC Green shares remained lukewarm in the grey market as well due to the mixed response from investors. The GMP (grey market premium) of these shares in the grey market was only around Rs 1, which indicates that the value of these shares on the day of listing may be around Rs 109. However, the possibility of volatility in the listing price of the shares remains intact, as is often the case in the stock market.

Conclusion

Overall, NTPC Green's IPO has received a mixed response, and investors may see some volatility on the day of its listing in the stock market. Investors are advised to invest only after taking full care of the risks associated with it, especially when there is no significant movement for these shares in the grey market.