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NTPC gains 3% on JV with ONGC for green energy

Stocks
2 min Read Nov 19, 2024
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Shares of NTPC rose by 3.21% to ₹378.50 on the NSE during early trade on Tuesday. This increase follows a significant announcement regarding a renewable energy-focused joint venture and the launch of an initial public offering (IPO) by its green energy arm. The surge highlights growing investor interest in share market investment related to renewable energy projects.

Joint venture with ONGC for green energy

NTPC disclosed the formation of ONGC NTPC Green (ONGPL), a 50:50 joint venture between NTPC Green Energy (NGEL) and ONGC Green Energy (OGL). The new entity will focus on renewable energy projects, exploring both Greenfield developments and acquisitions. Additionally, ONGPL will assess the feasibility of offshore wind projects, marking a strategic expansion in renewable energy ventures.

NTPC Green Energy's IPO seeks ₹3,000 crore

Adding to the positive sentiment, NTPC Green Energy's IPO launched today, aiming to raise ₹3,000 crore. The offering includes a fresh issue of 925,925,926 shares, reflecting NTPC's ambition to strengthen its position in the renewable energy sector.

NTPC's long-term growth plans

NTPC, India’s largest power utility, boasts an installed capacity of 72,254 MW, including joint ventures. The company has set a goal to become a 130 GW entity by 2032. Its focus on high-efficiency technology and renewable energy underscores its commitment to sustainable growth, making share market investment in NTPC increasingly attractive.

Market performance and capitalisation

As of November 19, 2024, NTPC’s market capitalisation stands at ₹3,60,279.63 crore, and it is a key constituent of the Nifty 50 index. The stock has fluctuated within 52 weeks from ₹448.45 to ₹247.30. Year-to-date, NTPC shares have delivered a 20% return, reflecting consistent investor confidence.

At 9:55 AM on Tuesday, NTPC shares were trading at ₹370.70, up 1.09% from their previous close of ₹366.70. On Monday, nearly 6.14 million shares worth approximately ₹229.42 crore changed hands on the NSE and BSE.

Broader market trends

Overall, market sentiment remained upbeat on Tuesday. The BSE Sensex climbed by 689.97 points, or 0.89%, to 78,028.98, while the NSE Nifty 50 advanced by 219.60 points, or 0.94%, to 23,673.40.

Key takeaways

  • NTPC shares gained 3.21% following a joint venture announcement and IPO launch.

  • ONGC NTPC Green will focus on renewable energy projects, including offshore wind exploration.

  • NTPC Green Energy's IPO targets ₹3,000 crore to bolster its green energy expansion.

  • NTPC shares have delivered a 20% return year-to-date, strengthening its appeal for share market investment.

  • Broader markets also traded higher, with Sensex and Nifty 50 posting notable gains.