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NTPC Green Energy, the third largest IPO of 2024, entered a strong market today.
NTPC Green Energy Shares
After more than three hours of listing in which NTPC Green debuted at a 3% premium to issue price, the stock extended gains and was trading 10% higher at Rs 122.32 at 1:20 pm on the NSE.
NTPC Green Energy’s market capitalization rose to Rs 1,03,247.82 on the day of listing.
Analyst Views on NTPC Green Energy
Prashant Tapse, senior VP of research at Mehta Equities, attributed the flat listing to weak valuations and market sentiment. However, he highlighted NTPC Green Energy as a strong investment opportunity for long-term investors due to its leadership in India’s renewable energy sector.
Tapse added that NTPC Green Energy’s strategic focus on emerging areas such as green hydrogen, chemicals, and battery storage positions the company as a key player in India’s energy transition. These initiatives, combined with the support and resources of parent company NTPC Limited, strengthen the company’s long-term growth prospects.
Swastika Investmart Ltd. Shivani Niyati, Head, Mein Wealth, said: “As a wholly-owned subsidiary of NTPC Limited, the company benefits from a strong and diversified portfolio across geographies and offtakers. Its consistent top-line growth is encouraging, though Temporary fluctuations in profitability and margins are a concern. Despite the aggressive valuation based on the PE ratio, the company’s long-term prospects in the renewable energy space make it a suitable option for patient investors with a long-term horizon. We call it 110 Advise to place with a close stop loss.”
NTPC Green, a subsidiary of NTPC, is India’s largest public sector enterprise by September 2024 in terms of renewable energy capacity (excluding hydro). Its renewable energy portfolio includes both solar and wind power projects spread across more than six states, helping to mitigate location-related generation risks. As of September 2024, the company’s operational capacity includes 3,220 MW of solar power and 100 MW of wind power.
The stock traded 9.89% higher at Rs 122.53 as of 2:22 pm on the NSE.