NTPC Green Energy, the third largest IPO of 2024, entered a strong market today.
After more than three hours of listing in which NTPC Green debuted at a 3% premium to the issue price, the stock extended gains and rose 10% to Rs. was trading at 122.32.
On the day of listing, the market capitalization of NTPC Green Energy increased to Rs. 1,03,247.82.
Analyst Opinion on NTPC Green Energy
Prashant Tapase, senior VP of research at Mehta Equities, attributed the flat listing to valuations and weak 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.
Tapps further said that NTPC Green Energy’s strategic focus on emerging sectors such as green hydrogen, chemicals and battery storage, positions the company as a key player in India’s energy transition. This initiative, along with the support and resources of parent company NTPC Ltd., boosts the company’s long-term growth prospects.
Shivani Nyati, Head of Wealth, Swastik Investsmart Limited said: “As a wholly owned subsidiary of NTPC Limited, the company benefits from a strong and diversified portfolio across geographies and off-takers. Its consistent top-line growth is encouraging, although temporary fluctuations in profitability and margins are a concern. Despite the aggressive valuation based on the PE ratio, the company’s long-term prospects in the renewable energy space make it a worthy option for patient investors with a long-term horizon and we recommend holding it with a stop loss around 110.”
NTPC Green, a subsidiary of NTPC, is India’s largest public sector enterprise 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. Helps mitigate location-specific firm risks. By September 2024, the company’s operational capacity includes 3,220 MW of solar power and 100 MW of wind power.
At the upper price band from NTPC Green Energy’s IPO, around Rs. 7,500 crore, it will be used primarily to repay or prepay part of the outstanding loan of its subsidiary, NTPC Renewable Energy Limited (NREL). A portion of the funds will also be earmarked for general corporate purposes.
By 2.22 pm on the NSE, the stock rose 9.89% to Rs. was traded at 122.53.