NTPC Green Energy shares hit 10% upper circuit limit after mild listing
Shares of NTPC Green Energy Ltd on Wednesday staged a positive market debut at the exchanges. The stock got listed at Rs 111.60 on BSE, a premium of 3.33 per cent over its issue price of Rs 108. As the session progressed, the stock jumped 10 per cent to hit its upper price band of Rs 122.75 as compared to its listing price of Rs 111.60.
Around 2.21 crore shares were last seen changing hands today. Turnover on the counter came at Rs 261.50 crore, commanding a market capitalisation (m-cap) of Rs 1,00,189.06 crore.
The initial public offering (IPO) of New Delhi-based company was open for bidding between November 19 and November 22. The issue was overall subscribed 2.42 times.
Post-listing views
“As expected NTPC Green’s listing was in line with flat debut. Valuations and subdued market mood justifies the listing. For long term investors, we believe NTPC Green is a great opportunity to invest in a leading player of India’s renewable energy sector, backed by the formidable resources and expertise of NTPC Ltd as a Long term strategy only. With ambitious renewable energy targets, the company is well-equipped to capitalise on the increasing demand for sustainable energy solutions. The company’s strategic expansion into green hydrogen, green chemicals and battery storage further enhances its growth prospects, positioning it at the forefront of India’s energy transition,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities.
“Considering all the parameters, allotted investors should hold it for the long term despite the short-term volatility in the markets. For non-allotted investors, we advise accumulating if the price is around the issue price or even below,” Tapse added.
“As a wholly-owned subsidiary of NTPC, 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 holding it with a stop loss at around Rs 110,” said Shivani Nyati, Head of Wealth at Swastika Investmart.
NTPC Green Energy is a renewable energy company that focuses on undertaking projects through organic and inorganic routes. The company, incorporated in April 2022, had an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects across six states as of August 31, 2024.
