NTPC Green Energy Listing: After a tepid debut, NTPC's renewable arm made strong listing gains on the bourses
NTPC Share Price: Despite a subdued listing premium, NTPC's renewable arm managed to hit the 10 per cent upper circuit on its debut day. The shares further surged by nearly 14 per cent during the later trading hours, lifting the initial investor sentiment.
Besides a robust listing, what interested the investors more was the company's market capitalisation crossing the Rs 1 trillion mark. The state-owned power generation company’s stock rallied to Rs 122, marking a 14 per cent premium over its issue price.
The shares concluded the day at Rs 121.65 price level, up by more than 12 per cent on the National Stock Exchange.
The subsidiary of NTPC already received a 'Subscribe' call from many brokerage houses. In FY23, the company reported a total income of Rs 170.63 crore and a net profit of Rs 171.23 crore. This significantly increased in FY24, with a total income of Rs 2,037.66 crore and a net profit of Rs 344.72 crore.
For the first half of FY25, NTPC Green Energy recorded a net profit of Rs 175.30 crore.
NTPC Green Energy has a contracted capacity of 15 GW. This makes it rank third, just after Adani Green’s 27 GW and Renew Power’s 16 GW capacity. However, NGEL's operational capacity stands at just 3.2 GW, generating an Ebitda of Rs 17 billion. Since filing its DRHP, the company has secured an additional 0.4 GW in solar projects.
"The locked-in portfolio is likely to be commissioned by FY28. We estimate the Ebitda of locked-in portfolio at Rs 95-100 billion. NGEL (NTPC Green Energy) has also entered into agreements and MoU with corporates to set up Renewable energy capacity (11GW; attributable capacity of 6.6GW) for their internal consumption," ICICI Direct stated in its report.
Its parent company, NTPC (National Thermal Power Corporation) has delivered double-digit returns to investors this year. On year-to-date basis, the shares of the PSU have witnessed a surge of nearly 20 per cent on the National Stock Exchange. However, the performance of the stock has remained muted in the last 6 months.