NTPC shares jump 4%, hit record high as NTPC Green Energy files draft papers to launch IPO

The stock jumped as much as 4.34% to the record high level in the early trade. 

According to the draft red herring prospectus (DRHP), the proposed IPO will be completely a fresh issue of equity shares. There will be no offer for sale (OFS) component.

Of the IPO proceeds, the renewable energy firm will use ₹7,500 crore to repay the debt of its subsidiary, NTPC Renewable Energy (NREL). A part will also be used for general corporate purposes.

NTPC Green Energy, which is a 'Maharatna' central public sector enterprise, has a renewable energy portfolio, including wind and solar power assets in more than six states.

India is a major player in the renewable energy sector and is globally ranked fourth in renewable energy capacity, the IPO papers, citing a Crisil report, said.

India's installed capacity jumped to 123 GW in FY21 from 63 GW in FY21. It jumped to 191 GW (including large hydro) in March 2024.

NTPC Q1 FY25 Results

The state-owned entity posted a 12% rise in consolidated net profit at ₹5,506.07 crore for the June quarter, mainly on the back of higher income.

In the year-ago period, its net profit stood at ₹4,907.13 crore, the company said in an exchange filing. Total income rose to ₹ 48,981.68 crore from ₹43,390.02 crore in the same period a year ago.

Expenses stood at ₹41,844.18 crore against ₹36,963.61 crore a year ago.

NTPC's consolidated power generation rose to 114 billion units (BUs) in Q1 FY25 from 104 billion units in Q1 FY24.

On a standalone basis, the company reported a net profit of ₹4,511 crore, around 11% higher as against ₹4,066 crore in the year-ago period.

NTPC stock performance

Shares of the company have gained 78% in the past 12 months and 259% in the past five years.