A Maharatna company engaged in power production and sales to state utilities has garnered investor interest by forming a joint venture with Mahatma Phule Renewable Energy and Infrastructure Technology Ltd to develop a 10 GW renewable energy project.
Price Variation
In Friday’s trading session, NTPC (National Thermal Power Corporation) Ltd’s shares rose to a 52-week high of Rs.440.15 per share, rising 1.32 percent from its previous closing price of Rs.434.40 apiece. The share price has retreated since then and currently trading at Rs.437.75 per share.
Rationale for the rise
On September 25, 2024, NTPC Green Energy Limited (NGEL), a wholly-owned subsidiary of NTPC Ltd, signed a Joint Venture Agreement (JVA) with Mahatma Phule Renewable Energy and Infrastructure Technology Ltd. (MAHAPREIT).
The joint venture will focus on the development of 10 GW of Renewable Energy Parks and Projects in Maharashtra or other states across India.
Order Book and Capacity Expansion
NTPC has secured thermal power orders for 4.5 GW, with an additional 15.2 GW expected over the next two fiscal years.
NTPC intends to increase its thermal capacity by 26 gigawatts (GW), with 9.5 GW currently under construction and 8 GW in the tendering phase. By the next annual meeting, NTPC aims to have 24 GW under construction, with 2-2.5 GW anticipated to be commissioned.
The company targets exceeding 130 GW by 2032, with over 60 GW expected to come from renewable energy sources.
IPO Filing
Earlier this month, NTPC’s green energy arm, NTPC Green Energy Ltd, submitted its draft red herring prospectus (DRHP) for a Rs.10,000 crore IPO, boosting investor sentiment during the IPO season.
The offering consists entirely of a fresh issue with no offer-for-sale (OFS) component. Retail investors holding NTPC shares can participate under the shareholder category, raising their maximum investment limit to Rs.4 lakh.
Financials
According to NTPC Ltd’s latest financial update, revenue increased by 13 percent to Rs.48,521 crore in Q1 FY25 from Rs.43,075 crore in Q1 FY24. The company’s net profit increased 12.2 percent to Rs.5,506 crore, from Rs.4,907 crore in the same period.
Company Profile
NTPC Limited is India’s largest power utility, with an installed capacity of over 76,000 MW. The company primarily focuses on generating and distributing electricity while also diversifying into renewable energy and coal mining to sustainably support India’s energy requirements.
Written by – Siddesh S Raskar
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