NTPC Green Energy Ltd emerged as one of the most active stocks on Wednesday, pulling up by more than 9% after touching the 10% upper limit on Tuesday. The company’s shares hit ₹155.35 on the National Stock Exchange of India (NSE), 44% higher than the IPO price of ₹108. The renewable energy stock came to the exchanges starting November 27, 2011, at a fair compensation of 3.2% over its issue price.
The net gains for the investors who were given at least one lot of 138 shares during the IPO are ₹6,534 based on the day’s intraday high, which is a good return on the invested ₹14,904. This rise is within an overall market recovery due to investor optimism and expectations over new rules to encourage sustainable investments.
The fundamentals of NTPC Green Energy have driven this rally as a company specializing in renewable energy. The latest CRISIL report mentioned that NTPC Limited’s renewable business segment is the largest renewable energy public sector unit in India by operating capacity as on September 30, 2024. The company’s solar and wind projects portfolio in several states makes it well-placed in a rapidly expanding market.
Furthermore, the expectations of fresh guidelines from the Reserve Bank of India’s Monetary Policy Committee scheduled from Dec 4 to Dec 6 have helped the market. They believe the RBI and other regulatory bodies will soon announce measures to support green lending to encourage more investment in solar projects and other renewable businesses.
Although non-institutional investors did not warmly welcome the IPO, it resulted in a 2.55-times-oversubscription. Still, after listing, the company was able to create much interest in the market for its shares.
The firm aims to lead NTPC Ltd’s green energy venture; the authorized company aspires to gain 60GW in 2031-32. In FY 2023–24, the company registered a revenue from operations of Rs 2,037.66 crore and a PAT of Rs 344.72 crore.