(Bloomberg) -- Shares of NTPC Green Energy Ltd. gained in their Mumbai debut, driven by investor demand for renewable power sector while India remains among the global hotspots for raising fresh capital.
The shares of the renewable-energy arm of top Indian power producer NTPC Ltd. started trading at 111.75 rupees, a premium of 3.5% over its IPO price of 108 rupees. They rose as much as 10% in early trading. The share sale raised $1.2 billion for the firm in one of the biggest Indian listings before the year-end.
Valued nearly $11 billion based at the top of its marketed price range of 108 rupees ($1.2806) a share, NTPC Green Energy Ltd. is raising funds via the sale of new shares to invest in its renewable energy unit and repay loans. Its IPO was fully sold last week, driven by strong demand for renewable energy stocks from investors betting on a sharp rise in India’s power consumption.
Retail investors bid at least three times the shares reserved for them, likely encouraged by the huge listing day pops for recent offers. Waaree Energy Ltd.’s $514 million offering last month surged 56% on debut, and Premier Energies Ltd.’s shares gained 87% when they were listed in August.
India has been a global hotspot for dealmaking in recent months with large listings such as Hyundai Motor India Ltd. and food delivery firm Swiggy Ltd. IPOs have been witnessing participation across investor categories.
Initial public offerings by 12 companies in the renewables space have raised more than $1.2 billion this year in India. Except for Acme Solar Holdings Ltd., all issues rallied on their debut.
The strong response for listings comes as foreign funds offload local shares amid pricey valuations, while the indictment of billionaire Gautam Adani by US prosecutors weighs on investor sentiment.
--With assistance from Dave Sebastian.
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