NTPC Green Energy Shares fell amid Anchor Investors offloads stake

NTPC Green Energy Ltd. shares experienced a significant decline in trading on Thursday, following the end of the first lock-in period for anchor investors who chose to offload their stakes.

The renewable energy subsidiary of the state-owned NTPC Ltd. went public just a month ago, achieving the largest initial public offering (IPO) this year. The company raised Rs 3,960 crore from 107 anchor investors a day before the IPO opened for bidding. 

NTPC Green Energy allotted 36.66 crore shares at an issue price of Rs 108 each. Among the major investors, the Life Insurance Corporation of India was the largest, acquiring 12.63% of the total issue for Rs 500 crore. Other notable investors included Goldman Sachs India, the Government of Singapore, and Capital Group affiliate New World Fund Inc. 

With the end of the first lock-in period on December 25, 50% of these shares became available for trading starting Thursday. The lock-in period for the remaining shares held by anchor investors will conclude on February 23.

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NTPC Green issued 4.35% of its equity to anchor investors, with half of the anchor shares, or 2.18%, of the equity coming out of the lock-in period. The Rs 10,000-crore initial public offering of NTPC Green Energy Ltd. was subscribed 2.42 times on its final day of bidding, with retail investors leading the demand with 3.44 times subscription.

Shares of the renewable energy arm of NTPC Ltd. closed at a premium of 12.31% over the issue price on the listing day. NTPC Green Energy's stock fell as much as 5.87% during the day to Rs 125.2 apiece on the NSE.

It was trading 4.4% higher at Rs 127.05 apiece, compared to a 0.07% advance in the benchmark Nifty 50 as of 11:01 a.m. It has risen 17% since its listing on Nov. 26. The total traded volume so far in the day stood at 0.6 times its 30-day average. The relative strength index was at 56.

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