Meanwhile, the Shares of NTPC Green Energy jumped to Rs 122.75 to hit their upper circuit. The stock debuted at Rs 111.6 on the BSE, reflecting a premium of Rs 3.6 or 3.25% over the IPO price of Rs 108.
NTPC Green, a subsidiary of NTPC, is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of September 24 and power generation in FY24. The proceeds from the Rs 10,000 crore IPO will be used for investment in its wholly-owned subsidiary, NTPC Renewable Energy, for the repayment of debt and other general corporate purposes.
The company’s renewable energy portfolio encompasses both solar and wind power assets with presence across multiple locations in more than six states which helps mitigate the risk of location-specific generation variability. The operational capacity was 3,220 MW of solar projects and 100 MW of wind projects as of September 2024.
“Despite the aggressive pricing 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 and we recommend to hold it with a stop loss at around 110,” said Shivani Nyati, Head of Wealth at Swastika Investmart while commenting on the outlook for NTPC Green Energy.
Prashanth Tapse, Senior VP (Research), Mehta Equities said “With ambitious renewable energy targets, the company is well-equipped to capitalize on the increasing demand for sustainable energy solutions. NTPC Green’s strategic expansion into green hydrogen, green chemicals and battery storage further enhances its growth prospects, positioning it at the forefront of India’s energy transition”.”Considering all the parameters, allotted investors should consider to Hold It For Long Term despite knowing short term volatility in the markets. For non-allotted investors, we advise to accumulate if the listing is around the issue price or even below,” Tapse added.Also read: Ola Electric shares climb 6% following the launch of 2 affordable electric scooters
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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