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NTPC Green Energy, the third largest IPO of 2024, made a powerful market debut right this moment.
NTPC Green Energy Shares
After greater than three hours of itemizing during which NTPC Green made a debut at 3% premium to subject worth, the inventory prolonged beneficial properties and was buying and selling 10% greater 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 itemizing day itself.
Analyst Views on NTPC Green Energy
Prashanth Tapse, Senior VP of Research at Mehta Equities, attributed the flat itemizing to valuations and a subdued market sentiment. However, he highlighted NTPC Green Energy as a powerful funding alternative for long-term buyers on account of its management place in India’s renewable power sector.
Tapse additional said that NTPC Green Energy’s strategic deal with rising areas resembling inexperienced hydrogen, chemical substances, and battery storage, positions the corporate as a key participant in India’s power transition. These initiatives, coupled with the assist and assets of father or mother firm NTPC Ltd., bolster the corporate’s long-term development prospects.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., mentioned: “As a wholly-owned subsidiary of NTPC Ltd., the corporate advantages from a sturdy and diversified portfolio throughout geographies and off-takers. Its constant top-line development is encouraging, although short-term fluctuations in profitability and margins stay a priority. Despite the aggressive pricing based mostly on the PE ratio, the corporate’s long-term prospects within the renewable power house make it an appropriate choice for affected person buyers with a long-term horizon and we advocate to carry it with a cease loss at round 110.”
NTPC Green, a subsidiary of NTPC, is the most important public sector enterprise in India by way of renewable power capability (excluding hydro), as of September 2024. Its renewable power portfolio contains each photo voltaic and wind energy initiatives unfold throughout greater than six states, serving to to mitigate location-specific technology dangers. As of September 2024, the corporate’s operational capability contains 3,220 MW of solar energy and 100 MW of wind energy.
The proceeds from NTPC Green Energy’s IPO, estimated at round Rs 7,500 crore on the higher worth band, shall be used primarily to repay or prepay a part of the excellent loans of its subsidiary, NTPC Renewable Energy Ltd (NREL). A portion of the funds may even be allotted for basic company functions.
The inventory traded 9.89% greater at Rs 122.53 on NSE as of two:22 pm.
