Shares of newly-listed state-run company NTPC Green Energy Ltd, a subsidiary of NTPC Ltd tanked as much as 8% to hit the 52-week low of Rs 96.20 on Monday, February 24, extending losses of a second session as its three-month shareholder lock-in period.
According to Nuvama Alternative & Quantitative Research, as many as 18.33 crore shares or 2% of the company’s outstanding equity have become eligible to be traded as the lock-in period ends. Notably, the end of a shareholder lock-in period does not mean all the shares will be sold in the open market. They only become eligible to be traded.
Currently, NTPC owns an 89% stake in NTPC Green Energy after having divested its stake during the company’s IPO.
At the time of writing, the stock was trading at Rs 98.23, down 7.32 points or 6.94% from the previous day’s close on the National Stock Exchange (NSE). It has fallen over 25% since its listing on November 27.
In the December 2024 quarter (Q3 FY25), the company reported a 4.1% growth in its revenue to Rs 460.9 crore compared to 442.6 crore in the same period last year, while its Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) fell by 2.3% to Rs 384.6 crore from Rs 393.6 crore a year ago. The company’s EBITDA margin also narrowed, falling to 83.5% from 88.9% in Q3 FY24. It posted a strong 52.3% jump in net profit to Rs 89.4 crore from Rs 58.7 crore in the same period last year.
NTPC Green Energy shares have fallen below their IPO price of Rs 108 on February 11 and have been trading below those levels since then.
The renewable energy company made a muted stock market debut on the NSE at a premium of around 3% on November 27. The issue was subscribed 2.42 times in the primary market.
