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Shares of the PSU stock NTPC rallied 3.5 per cent to its day’s high of Rs 428.70 on BSE after the company’s subsidiary NTPC Green Energy filed draft papers for a Rs 10,000 crore initial public offering (IPO) on Wednesday.
The company will only issue new shares and existing shareholders will not sell any stake, according to the draft papers.
The filing also comes at a time when power producers are betting big on renewables and making pledges to expand their green energy capacities.
The fundraising assumes significance as India has an ambitious target of having 500 GW renewable energy by 2030 and needs to add about 50 GW capacity per annum to achieve the goal.
NTPC has reported a standalone net profit of Rs 4510.98 crore for the quarter ended June 30, 2024, up by 11 per cent YoY, while the revenue from operations went up to Rs 44,419.22 crore in the same period.
The revenue from operations was up by 13.5 per cent on a year-on-year basis from Rs 39,122.25 crore in the same quarter a year ago.
What Do Analysts Say?
Global brokerage Jefferies maintained its buy call with a price target of Rs 185 per share.
The brokerage said the power producer is moving towards its 60 GW 2032 renewable energy target and has 24 GW pipeline in place. The company is focusing on renewable energy capacity ramp-up amid the ongoing pilot initiatives on green hydrogen. The brokerage pointed out that in the medium-term double-digit EPS CAGR remains a rerating driver for the company.
NTPC shares have gained 77.31 per cent in one year and risen 38.21 per cent in 2024.
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