NTPC Shares Hit All-Time High As Arm Submits Draft Papers For Rs 10,000-Crore IPO

NTPC Green's IPO comes at a time when India aims to boost its renewable energy sector, targeting an increase in capacity to 500 GW by 2030.

NTPC Green Energy Ltd., an arm of the state-run company, filed the draft red herring prospectus for an initial public offering. (Source: NTPC company website)

Shares of NTPC Ltd. surged more than 4% to hit an all-time high after NTPC Green Energy Ltd., an arm of the state-run company, filed the draft red herring prospectus for an initial public offering to raise Rs 10,000 crore on Wednesday.

The IPO comes at a time when India aims to boost its renewable energy sector, targeting an increase in capacity to 500 GW by 2030 from the current 200 GW.

The offer is likely to attract significant investor interest, as green energy continues to be a priority, according to Kranthi Bathini, director of equity strategy at WealthMills Securities. NTPC is seeking to diversify its earnings by exploring new energy avenues, he said.

Also Read: NTPC Green Energy Listing Could See Market Cap At 7.5 Times The IPO Size

Shares of the company rose as much as 4.27%, the highest level since listing, before paring gains to trade 3.04% higher at Rs 426.75 apiece, as of 10:12 a.m. This compares to a 0.58 advance in the NSE Nifty 50.

The stock has risen 37.28% year-to-date. Total traded volume so far in the day stood at two times its 30-day average. The relative strength index was at 63.97.

Out of 23 analysts tracking the company, 19 maintain a 'buy' rating, one recommends a 'hold' and three suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 0.3%.

Also Read: Stock Market Today: Nifty, Sensex End At Record Highs As Private Bank Stocks Lead

Watch LIVE TV , Get Stock Market Updates, Top Business , IPO and Latest News on NDTV Profit.
WRITTEN BY
Divya Prata
Divya Prata is a desk writer at NDTV Profit, covering business and market n... more
GET REGULAR UPDATES