NTPC Green freezes at 10% upper circuit; surges 32% over issue price

With 4,294MW of operational solar and wind capacity supported by 25-year power purchase agreements (PPAs), NTPC Green aims to add 16GW of renewable energy in the next three years

Shares of NTPC Green Energy (NGEL) were locked in upper circuit of 10 per cent at Rs 142.10, also its new high since listing, on the BSE on Tuesday at 09:55 AM.  Only buyers were seen on the counter, with a combined 57.68 million shares already changing hands, while there were pending buy orders for 5.42 million shares on the NSE and BSE.

 

With today’s rally, the stock price of NGEL has surged 32 per cent over its issue price of Rs 108 per share. The state-owned renewable power generation company had made its stock market debut on November 27, 2024.

 

NGEL, a subsidiary of NTPC, India’s largest integrated energy company with over 76GW of installed capacity, is among the top 10 renewable players in India. NGEL focuses exclusively on renewable energy which includes solar, wind, and solar-wind hybrid power projects.

 

With 4,294MW of operational solar and wind capacity supported by 25-year power purchase agreements (PPAs), NGEL aims to add 16GW of renewable energy (RE) in the next three years and achieve 60GW capacity by 2032.  The company plans to commission 3GW in FY25, 5GW in FY26, and 8GW in FY27, leveraging strategic agreements with Rajasthan (25GW) and Maharashtra (10GW), which provide the company a robust pipeline for achieving these goals.

 

Expanding into green hydrogen and battery storage, NGEL is also developing a hydrogen hub in Andhra Pradesh and grid-scale storage facilities for RE integration. Its strong ties with NTPC enables it to access low-cost debt at approximately 7 per cent, supporting its ambitious growth strategy, said analysts at Elara Capital.

 

India’s renewable energy capacity has grown five-fold over the past decade to 201GW, with solar contributing 44 per cent (89GW).  The government’s target of 450GW of renewable capacity by 2030F, supported by inter-state transmission charge waivers, renewable purchase obligations (RPOs), and a Rs 19,700 crore Green Hydrogen Mission, creates robust growth opportunities.  Additionally, reducing solar module prices at $0.09 per watt-peak and rising hybrid project tariff (Rs 3.15-3.20/kWh) improve project viability and sectoral profitability, analysts at InCred Equities said in the company's IPO note.