NTPC Green Energy Makes a Stellar Market Debut, Shares Surge Over 12%
The Indian stock market witnessed a significant event on Wednesday with the highly anticipated listing of NTPC Green Energy Ltd (NGEL), the renewable energy subsidiary of the state-owned power giant NTPC. The initial public offering (IPO) had already generated significant buzz, closing with a 2.40 times subscription rate, showcasing robust investor interest in the company’s green energy portfolio.
NGEL’s shares commenced trading with a strong premium. On the Bombay Stock Exchange (BSE), the stock debuted at Rs 111.60, a 3.33% increase over its issue price of Rs 108. The upward momentum continued throughout the morning session, with the stock reaching an impressive high of Rs 121.40, representing a remarkable 12.40% surge. A similar trend was observed on the National Stock Exchange (NSE), where the stock opened at Rs 111.50, a 3.24% jump from the IPO price.
This impressive market debut translates into a substantial market valuation for NGEL. During the initial morning trade, the company’s market capitalization reached a staggering Rs 1,02,211.38 crore (approximately $12.3 billion USD). This signifies strong investor confidence in the company’s future prospects and the growth potential of India’s renewable energy sector.
The successful listing of NGEL also provided a positive boost to its parent company, NTPC. Shares of NTPC itself experienced a near 2% rise on the BSE, closing at Rs 368.80, indicating positive investor sentiment across the NTPC group.
The Rs 10,000 crore IPO (approximately $1.2 billion USD), with a price band of Rs 102-108 per share, was primarily aimed at strengthening NGEL’s financial position. A significant portion of the proceeds—approximately Rs 7,500 crore at the upper band—will be used to repay or prepay outstanding loans of NTPC Renewable Energy Ltd (NREL), a subsidiary of NGEL. The remaining funds will be allocated to general corporate purposes, further supporting the company’s expansion plans in the renewable energy domain.
NGEL, a ‘Maharatna’ central public sector enterprise, boasts a diverse renewable energy portfolio comprising solar and wind power assets. This listing solidifies NGEL’s position as a major player in India’s rapidly expanding renewable energy sector and signals a promising future for the company and the nation’s commitment to cleaner energy sources. The remarkable performance on its debut indicates a strong belief in NGEL’s potential to contribute significantly to India’s energy transition.
