NTPC Green Shares Close 9% Higher than the Listing Price

27 Nov 2024 , 03:41 PM

On Wednesday, NTPC Green Energy was listed at a 3.2% premium over its initial public offering price. At an issue price of Rs 108, the stock made its debut on the BSE and NSE at Rs 111.5. The shares closed at Rs 121.65.

Despite the market’s selloff mood and high valuations, the offer had respectable demand from institutional and retail investors, but non-institutional investors showed little interest.

As a long-term strategy only, analysts see NTPC Green Energy as a chance to invest in a major player in India’s renewable energy market, supported by NTPC’s impressive resources and experience.

In addition to debt repayment and other basic business needs, the Rs 10,000 crore IPO proceeds will be invested in its wholly-owned subsidiary, NTPC Renewable Energy.

In terms of operating capacity as of September 24 and electricity generation in FY24, NTPC Green, a subsidiary of NTPC, is the biggest public sector renewable energy company (apart from hydro).

Its renewable energy portfolio helps reduce the risk of location-specific generation unpredictability by including wind and solar power assets spread across several locations in over six states. As of September 2024, the operating capacity consisted of 100 MW of wind projects and 3,220 MW of solar projects.

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