NTPC Green Energy Share Price Slumps 6% As Anchor Investor Lock-In Period For IPO Ends Today; BUY?

The shares of NTPC Green Energy Ltd declined nearly 6% in early trade on Thursday, marking a notable slump as the one-month lock-in period for the company's anchor investors expired. The renewable energy stock fell as much as 5.93% to Rs 125.20 per share on the Bombay Stock Exchange (BSE).

Lock-In Period Expiry

The expiration of the lock-in period, which applied to 50% of shares held by anchor investors, allowed 1.83 crore shares (equivalent to a 2% stake in the company) to become eligible for trading. However, while the end of a lock-in period permits such shares to enter the market, it does not necessarily mean that all shares will be sold immediately. This increased liquidity raised concerns about potential sell-offs, contributing to the stock's losses during the trading session.

Stock Performance

NTPC Green Energy had a muted debut on the stock exchanges. The stock was listed on November 29 at Rs 111.50 per share on the National Stock Exchange (NSE), a modest 3.2% premium over its issue price of Rs 108 per share. On the BSE, the stock debuted at Rs 111.60 per share.

Despite its subdued listing, the stock has since shown resilience, delivering gains of over 23% from its issue price and more than 19% from its listing price. As of 2:25 pm on Thursday, NTPC Green Energy shares were trading at Rs 126.10 per share on the NSE, down 5.2% for the day but still up nearly 4% since listing. The company commands a market capitalization exceeding Rs 1.06 lakh crore.

NTPC Green Energy IPO Details

The Initial Public Offering (IPO) of NTPC Green Energy, a renewable energy-focused subsidiary of NTPC Ltd., was open for subscription from November 19 to November 22. The IPO raised Rs 10,000 crore, priced in the range of Rs 102 to Rs 108 per share. The entire offering comprised a fresh issue of equity shares, with no Offer-for-Sale (OFS) component.

Investor response to the IPO was robust, with the issue being subscribed 2.55 times. The company received bids for 142.65 crore shares against an offer size of 56 crore shares.

Ahead of the public issue, NTPC Green Energy secured Rs 3,960 crore from anchor investors on November 18. This strong institutional backing contributed to the IPO's successful subscription.

The decline in NTPC Green Energy's stock price following the lock-in expiry reflects typical market dynamics surrounding anchor investor shares. While the unlock increased market liquidity, investor concerns over potential sell-offs weighed on the stock's performance during the day.