NTPC Green Energy Limited (NGEL), the renewable energy arm of NTPC, witnessed a strong rally on November 27 as its stock hit the 10% upper circuit, closing at ₹122.65 per share on the NSE. This marked a 13.56% rise from its IPO price of ₹108 per share, reflecting investors’ confidence in India’s growing demand for clean energy and the government’s emphasis on renewable energy adoption.
Market debut and listing premium
The shares of NTPC Green Energy debuted on the NSE at ₹111.50 apiece, a modest premium of 3.24% over the IPO price. On the BSE, the listing price was slightly higher at ₹111.60, reflecting a 3.33% premium. Despite the muted listing, the stock gained momentum later in the day, locking in the highest permissible trade limit.
NTPC Green Energy’s ₹10,000 crore IPO was open for subscription from November 19 to November 22. The price band was set between ₹102 and ₹108 per share. The IPO received an overwhelming response, closing 2.55 times oversubscribed. Retail investors showed significant interest, booking shares 3.59 times their allotted quota.
The offering garnered bids for 142.65 crore shares against 56 crore shares available. Additionally, NTPC Green allocated 1.94 crore shares to eligible employees, offering a ₹5 per share discount.
The proceeds from the IPO will primarily be used to, Invest in NTPC Renewable Energy Limited (NREL), a wholly owned subsidiary of NTPC Green, NREL will utilize the funds for repayment or prepayment of its outstanding borrowings. General Corporate Purposes which is supporting the company’s overall growth strategy.
Financial performance
NTPC Green Energy is positioning itself at the forefront of India’s renewable energy transition by diversifying into green hydrogen, green chemicals, and battery storage solutions. These ventures are expected to enhance the company’s long-term growth prospects.
The company also demonstrated robust financial performance, with revenue surging 1,094.19% and profit after tax (PAT) growing by 101.32% between the fiscal years ending March 31, 2023, and March 31, 2024.
As India advances its clean energy goals, NTPC Green Energy is well-poised to capitalize on the growing demand for renewable energy solutions.
