Green energy stock engaged in developing, constructing, and operating renewable energy projects, including solar and wind, is in focus after announcing a 50:50 joint venture with New and Renewable Energy Development Corporation of Andhra Pradesh Limited (NREDCAP) to develop renewable energy projects.
Stock Price Movement
In Friday’s trading session, NTPC Green Energy Limited‘s share reached an intraday high of Rs. 113.20 per equity share, rising 1.52 percent from its previous day’s close price of Rs. 111.50. The stock opened at Rs. 111.80 and is currently trading at Rs. 110.80. The market capitalization now stands at approximately Rs. 93,363.73 crores.
What Happened
NTPC Green Energy Limited (NGEL), a subsidiary of NTPC Limited, has announced the incorporation of a new joint venture, “AP NGEL HARIT AMRIT LIMITED,” formed in collaboration with the New & Renewable Energy Development Corporation of Andhra Pradesh Limited (NREDCAP).
The 50:50 joint venture focuses on renewable energy projects, with aim to develop up to 25 GW of solar, wind, and hybrid energy projects, produce green hydrogen (0.5 MMTPA), and explore green derivatives like ammonia and methanol.
Additionally, it will develop pump hydro projects with a capacity of up to 10 GW. This joint venture is approved by the Ministry of Power, Government of India, and further strengthens NGEL’s renewable energy portfolio.
Renewable Energy Capacity
As of June 30, 2024, the company’s portfolio includes 14,696 MW, with 2,925 MW operational and 11,771 MW contracted. It has 15 off-takers across 37 solar and 9 wind projects.
Additionally, the company is constructing 31 renewable energy projects across 7 states, totaling 11,771 MW. As of August 31, 2024, the company had an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects across six states.
IPO Details
The NTPC Green Energy IPO opened for subscription on November 19, 2024, and closed on November 22, 2024. The IPO is a book-built issue of Rs. 10,000.00 crores, entirely a fresh issue of 92.59 crore shares. The IPO price band was set at Rs. 102 to Rs. 108 per share.
The company uses the IPO fund for new renewable energy projects, to reduce company debt, and for general corporate purposes. The company has also entered into joint venture agreements to produce renewable power
Recent quarter results
NTPC Green Energy Limited’s revenue has increased from Rs. 446 crore in Q2 FY24 to Rs. 505 crore in Q2 FY25, which has grown by 13.23 percent. The net profit has also grown by 17.86 percent from Rs. 56 crore in Q2 FY24 to Rs. 66 crore in Q2 FY25.
Written by – Nikhil Naik
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