The shares of the renewable-energy arm of top Indian power producer NTPC Ltd surged almost 14% over their initial share sale price of 108 rupees, before paring some advance. The offering raised US$1.2 billion (RM5.33 billion) for the firm in one of the biggest Indian listings this year. 

Valued at nearly US$11 billion based on its initial public offering (IPO) pricing, the firm is raising funds via 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 US$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.

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.

“This IPO shows that despite the overhang of the Adani controversy and any volatility in the Indian market, there continues to be a strong appetite for Indian IPOs,” said Nirgunan Tiruchelvam, an analyst at Aletheia Capital in Singapore. 

IPOs by 12 companies in the renewables space raised more than US$1.2 billion this year in India, before the NTPC Green debut. Except for Acme Solar Holdings Ltd, all issues rallied on their debut.

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