NTPC Green Energy Shares Record Worst Ever Session As Final Anchor Lock-In Ends

Shares of NTPC Green Energy Ltd. tumbled nearly 9% — the worst fall since listing — on Monday, as anchor investors offloaded their stake with the final lock-in period ending.

The company had initially raised Rs 3,960 crore from 107 anchor investors a day before its initial public offering opened for bidding. The company allotted 36.66 crore shares at an issue price of Rs 108 apiece.

The first lock-in period of the green arm ended on Dec. 26, with the shares falling as much as 5.87% during the day. 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 periods.

Shares of the renewable energy arm of NTPC Ltd. closed at a premium of 12.31% over the issue price on the listing day. 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 demand with 3.44 times subscription.

NGEL plans to utilise 75%, or Rs 7,500 crore, of the IPO proceeds towards debt repayment. The balance of 25% will be used for general corporate purposes.

NTPC Green Energy's stock fell as much as 8.86% to Rs 96.2 apiece, before paring losses to trade 6.81% lower at Rs 98.36 per share, compared to a 0.98% decline in the benchmark Nifty 50 as of 03:00 p.m.

It has fallen 22.67% since its listing on Nov. 27. Total traded volume so far in the day stood at 5.63 times its 30-day average. The relative strength index was at 36.51.

One of the two analysts tracking the company has a 'buy' rating on the stock, and the other recommends a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 107.5, implying an upside of 10%.