NTPC shares surge after SEBI approval of ₹10,000-crore NTPC green energy IPO

The state-owned NTPC recently saw a notable share price increase of up to 3%, coinciding with the Securities and Exchange Board of India’s (SEBI) approval of NTPC Green Energy’s ₹10,000-crore Initial Public Offering (IPO). This surge in the stock presents a fresh opportunity for those looking to invest in stocks, especially within the renewable energy sector. Here’s a look at what’s fuelling the buzz.

NTPC share price gains amid IPO approval

NTPC shares climbed to an intraday high of ₹414 following SEBI’s green light for NTPC Green Energy’s IPO. Investors now view this milestone as a promising entry point to invest in stocks in the energy sector, particularly with NTPC’s ongoing focus on renewable assets. SEBI’s approval came after NTPC Green Energy’s September submission, setting the stage for significant growth within the company’s green energy initiatives.

Focus on renewable energy growth

NTPC Green Energy, a subsidiary specialising in renewables, intends to allocate ₹7,500 crore of the IPO proceeds toward repaying or prepaying loans from its renewable subsidiary, NTPC Renewable Energy Ltd. The remaining amount will be dedicated to general corporate expenses, aiming to expand renewable energy capacity and stabilise operations. 

As NTPC Green Energy grows, so does the attractiveness of NTPC shares for those planning to invest in stocks within green industries.

NTPC’s impressive Q2 performance

Further enhancing the appeal for those looking to invest in stocks, NTPC’s Q2 results reflect resilience and stability. Its consolidated net profit rose by 14% year-on-year to ₹5,380.2 crore. Although there was a minor dip in total income, NTPC’s dividend announcement of ₹2.50 per share offers additional motivation for both new and existing investors.

Maharatna status and renewable energy portfolio

As a 'Maharatna' public sector enterprise, NTPC Green Energy holds the largest renewable capacity among public companies, covering solar and wind power projects across six Indian states. For investors keen to invest in stocks, NTPC Green Energy’s upcoming IPO highlights the company’s leadership and growth within the renewable space.

Why now might be the time to invest in NTPC

With NTPC’s diversification into renewable energy, it is becoming an increasingly attractive choice for investors aiming to invest in stocks that are set to benefit from India’s energy transition. The company’s consistent earnings, expansion plans, and recent market activity make NTPC shares a valuable asset in the stock market. 

Furthermore, with NTPC Green Energy’s IPO drawing closer, market enthusiasm is likely to build, making this a timely opportunity to consider NTPC as a reliable investment.

Invest safely

As NTPC shares experience a surge, the SEBI approval for NTPC Green Energy’s ₹10,000-crore IPO underscores the expanding opportunities within India’s renewable sector. Investors interested in sustainable, long-term growth may find NTPC’s stock to be a strong contender, as its green energy arm pushes forward with ambitious goals. 

Whether seasoned or new to the market, those looking to invest in stocks should consider NTPC’s potential as a robust choice for portfolio diversification.