Last Updated:
NTPC Green Energy, the third largest IPO of 2024, made a strong market debut today.
NTPC Green Energy Shares
After more than three hours of listing in which NTPC Green made a debut at 3% premium to issue price, the stock extended gains and was trading 10% higher at Rs 122.32 on NSE at 1:20 pm.
NTPC Green Energy’s market capitalisation rose to Rs 1,03,247.82 on the listing day itself.
Analyst Views on NTPC Green Energy
Prashanth Tapse, Senior VP of Research at Mehta Equities, attributed the flat listing to valuations and a subdued market sentiment. However, he highlighted NTPC Green Energy as a strong investment opportunity for long-term investors due to its leadership position in India’s renewable energy sector.
Tapse further stated that NTPC Green Energy’s strategic focus on emerging areas such as green hydrogen, chemicals, and battery storage, positions the company as a key player in India’s energy transition. These initiatives, coupled with the support and resources of parent company NTPC Ltd., bolster the company’s long-term growth prospects.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., said: “As a wholly-owned subsidiary of NTPC Ltd., the company benefits from a robust and diversified portfolio across geographies and off-takers. Its consistent top-line growth is encouraging, though temporary fluctuations in profitability and margins remain a concern. Despite the aggressive pricing based on the PE ratio, the company’s long-term prospects in the renewable energy space make it a suitable option for patient investors with a long-term horizon and we recommend to hold it with a stop loss at around 110.”
NTPC Green, a subsidiary of NTPC, is the largest public sector enterprise in India in terms of renewable energy capacity (excluding hydro), as of September 2024. Its renewable energy portfolio includes both solar and wind power projects spread across more than six states, helping to mitigate location-specific generation risks. As of September 2024, the company’s operational capacity includes 3,220 MW of solar power and 100 MW of wind power.
The proceeds from NTPC Green Energy’s IPO, estimated at around Rs 7,500 crore at the upper price band, will be used primarily to repay or prepay part of the outstanding loans of its subsidiary, NTPC Renewable Energy Ltd (NREL). A portion of the funds will also be allocated for general corporate purposes.
The stock traded 9.89% higher at Rs 122.53 on NSE as of 2:22 pm.
