Impressive Market Entry
NTPC Green Energy Ltd, the renewable energy subsidiary of NTPC, made a notable debut in the stock market on Wednesday with a premium of over 3% above its issue price of ₹108 per share. The company’s shares opened at ₹111.60 on the Bombay Stock Exchange (BSE), reflecting a 3.33% rise, and climbed to a peak of ₹121.40, marking an impressive 12.40% increase during early trading. Meanwhile, on the National Stock Exchange (NSE), the stock opened at ₹111.50, registering a 3.24% gain from the issue price. This performance brought NTPC Green Energy’s market valuation to an impressive ₹1,02,211.38 crore in the morning trade.
Strong Demand for IPO
The successful debut followed strong investor interest during the initial public offering (IPO), which closed last Friday. The ₹10,000-crore IPO, offered at a price band of ₹102-108 per share, was oversubscribed 2.40 times. Investors were drawn to the company’s growing renewable energy portfolio, which includes solar and wind power assets. At the upper end of the price band, the IPO is expected to raise approximately ₹7,500 crore. NTPC Green Energy plans to utilize these funds primarily to reduce or fully repay outstanding loans of its subsidiary, NTPC Renewable Energy Ltd (NREL). A portion of the proceeds will also be allocated to general corporate purposes, ensuring financial flexibility for future operations.
A Boost for NTPC and Renewable Energy Goals
NTPC, a ‘Maharatna’ central public sector enterprise, witnessed its own shares rise by nearly 2%, trading at ₹368.80 on the BSE. The positive market sentiment surrounding NTPC Green Energy’s performance underscores investor confidence in India’s renewable energy sector. NTPC Green Energy plays a pivotal role in NTPC’s commitment to sustainable energy, with a robust portfolio of solar and wind projects. This successful stock market debut further strengthens the company’s position as a key player in India’s renewable energy drive and highlights the growing appeal of green energy investments in the country.
With the rising focus on clean energy and sustainable practices, NTPC Green Energy’s market entry marks a significant milestone in India’s transition towards renewable energy leadership.
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