The much-anticipated IPO of NTPC Green Energy is set to open for subscription today. Ahead of the issue, the company shares are trading at a muted grey market premium (GMP) of ₹1 in the unlisted market.

Foreign Institutions who participated in the anchor round include Capital World, Goldman Sachs, GIC, T.Rowe Price, Abu Dhabi Investment Authority, Morgan Stanley, Allianz Global, among others.

Employees, institutional, non-institutional, NTPC shareholders, and retail investors will be able to bid from Tuesday, which will be open till November 22. Notably, anchor investors can bid on.

NTPC Green Energy’s initial public offering (IPO) is poised to open for public bidding on Dalal Street this week. The public offer will be opened for anchor bidding on Monday, November 18.

NTPC Green Energy IPO consists of entirely fresh issue by the company, with no offer-for-sale component. The price band for the offer has been fixed at Rs 102-108 per share.

The IPO valuation looks aggressive since the company is approaching the primary market in the initial stage of operations where capital expenditure (capex) is higher to build capacities while the benefit in terms of higher cash flows and profit will flow in subsequent years.

NTPC Green Energy IPO price band is set at ₹102 to ₹108 per share. At the upper-end of the price band, the company plans to raise ₹10,000 crore from the book-built issue which is entirely a fresh issue of 92.

Market analysts believe that NTPC has commendable growth potential in a growing sector but its high valuation could pose risks for investors investing with a view of short-term gains.