Shares of NTPC Green Energy Ltd. saw a significant decline on Thursday, following the expiration of the first lock-in period for its anchor investors. The renewable energy subsidiary of state-owned NTPC Ltd., which went public a month ago, witnessed its stock fall by up to 5.87%, trading at Rs 125.20 on the NSE.
The lock-in period for 50% of the shares allotted to anchor investors ended on December 25, allowing them to trade their holdings starting Thursday. As a result, the market saw a surge in selling pressure. The remaining 50% of these shares will be free to trade after February 23, when the next lock-in period expires.
NTPC Green Energy Ltd. raised Rs 3,960 crore from 107 anchor investors ahead of its initial public offering (IPO). The company allocated 36.66 crore shares at an issue price of Rs 108 each. Notable investors included Life Insurance Corporation of India (LIC), which invested Rs 500 crore, as well as Goldman Sachs India, the Government of Singapore, and New World Fund Inc..
The company’s Rs 10,000 crore IPO was oversubscribed by 2.42 times, with retail investors showing strong interest, subscribing 3.44 times the offered shares. On its listing day, the stock closed with a 12.31% premium above the issue price.
IPO Proceeds and Utilization
The proceeds from the IPO are expected to be primarily used for debt repayment, with 75% or Rs 7,500 crore allocated for this purpose. The remaining funds will be directed towards general corporate purposes.
Despite Thursday’s drop, NTPC Green Energy shares have gained 17% since their listing on November 26, reflecting strong investor interest in the renewable energy sector.
As of 11:01 a.m., the stock was trading 4.4% higher at Rs 127.05, outperforming the 0.07% gain in the benchmark Nifty 50 index. The stock’s relative strength index (RSI) stood at 56, indicating moderate momentum in the market.
