NTPC Subsidiary Eyes Rs 10,000 Crore IPO, stock rises

19 Sep 2024 , 01:31 PM

NTPC shares rose 3.5% to a day high of Rs 428.70 on the BSE after its subsidiary NTPC Green Energy submitted draft papers for a Rs 10,000 crore initial public offering (IPO) on Wednesday.

According to the draft papers, the corporation will only issue new shares, and current shareholders will not sell their stakes.

The application also comes at a time when electricity companies are banking heavily on renewables and promising to increase their green energy capacity.

The fundraising takes on significance because India has an ambitious objective of having 500 GW of renewable energy by 2030 and needs to build roughly 50 GW capacity each year to reach the goal.

The IPO market in India is rising. So far this year, over 235 firms have raised more than $8.6 billion, outpacing the total amount raised in 2023.

NTPC recorded a standalone net profit of Rs 4510.98 crore for the quarter ended June 30, 2024, up 11% year on year, while operating revenue increased to Rs 44,419.22 crore in the same period.

The revenue from operations increased by 13.5% year on year, from Rs 39,122.25 crore in the same period last year.

NTPC’s shares have risen 78.4% in the last year, and 37.3% in the last six months. Year-to-date, the stock is up 39%.

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