NTPC Green Energy Listing: NTPC Green Energy shares made their stock market debut on Wednesday (November 27,) with a modest premium of over 3 per cent. The renewable energy arm of NTPC listed at Rs 111.50 per share on the National Stock Exchange (NSE), marking a 3.24 per cent premium over its initial public offering (IPO) price of Rs 108 per share.
On the BSE, the stock opened at Rs 111.60, reflecting a 3.33 per cent premium. The IPO, which raised Rs 10,000 crore, was subscribed 2.42 times in the primary market.
Despite muted grey market expectations, the listing exceeded forecasts, offering limited short-term gains for IPO allottees. Analysts, however, view the stock as a long-term opportunity for investors, given the company's robust renewable energy portfolio.
Proceeds and Strategic Investments
NTPC Green Energy, a 'Maharatna' central public sector enterprise, plans to utilise Rs 7,500 crore of the IPO proceeds to repay or prepay loans of its subsidiary, NTPC Renewable Energy Ltd. (NREL). The remaining funds will be allocated for general corporate purposes.
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Expansion Through Joint Venture
In an another development, NTPC announced the establishment of a 50:50 joint venture with Maharashtra State Power Generation Company Ltd (MAHAGENCO). The newly incorporated Mahagenco NTPC Green Energy Private Limited (MNGEPL) will focus on developing, operating, and maintaining renewable energy parks in Maharashtra.
According to a regulatory filing on November 26, the joint venture will work under the Ultra Mega Renewable Energy Power Parks (UMREPP) scheme and allocate renewable energy projects within these parks. MNGEPL aims to accelerate the adoption of green energy in Maharashtra and bolster India's renewable energy goals.
This listing and strategic expansion underscore NTPC Green Energy's commitment to driving the transition to sustainable energy solutions while delivering value to its stakeholders.