NTPC Green Energy shares up by 22% from issue price

Shares of NTPC Green Energy, the renewable energy division of NTPC, made a strong start in the share market investment arena, rising as much as 3.32% to ₹132 on the Bombay Stock Exchange (BSE) on Thursday. This represents a 22% increase from its issue price of ₹108. The stock touched a high of ₹132.25 during the session, continuing its positive trend from the listing day on November 27.

Stock performance post-listing

NTPC Green Energy Ltd's shares were listed with a premium of over 3% on the BSE. The stock opened at ₹111.60, 3.33% higher than the issue price, and later rose by 12.40%, reaching ₹121.40. On the National Stock Exchange (NSE), shares opened at ₹111.50, up 3.24%.

The company’s initial public offering (IPO) was oversubscribed by 2.4 times, showing strong investor interest. The ₹10,000 crore offering had a price band between ₹102 and ₹108 per share.

Use of IPO proceeds

NTPC Green Energy plans to use the proceeds from the IPO, approximately ₹7,500 crore at the upper price band, to repay or prepay loans of its subsidiary, NTPC Renewable Energy Ltd (NREL). Part of the funds will also be allocated for general corporate purposes.

The company’s renewable energy ambitions

As a ‘Maharatna’ public sector enterprise, NTPC Green Energy focuses on expanding its renewable energy portfolio, which includes projects like solar and wind power projects. The company’s goal is to support NTPC’s ambitious target of generating 60 GW of green energy by FY 2032.

Progress on solar projects

NTPC Green Energy announced on Thursday that its subsidiary, NTPC Renewable Energy, has begun commercial operations for the first phase of the Shajapur Solar Project in Madhya Pradesh. The project has a total capacity of 105 MW, with the initial 55 MW now in commercial operation from November 29, 2024.

Key takeaways

1. NTPC Green Energy's shares surged 22% from the issue price of ₹108.
2. The IPO was oversubscribed by 2.4 times.
3. Funds from the IPO will help repay loans and support corporate initiatives.
4. The company continues to expand its renewable energy assets, including major solar projects.

This IPO marks a positive step in NTPC’s share market investment strategy, reflecting the growing investor confidence in green energy initiatives.