Shares of the PSU stock NTPC rallied 3.5% to its day's high of Rs 428.70 on BSE after the company's subsidiary NTPC Green Energy filed draft papers for a Rs 10,000 crore initial public offering (IPO) on Wednesday.

The company will only issue new shares and existing shareholders will not sell any stake, according to the draft papers.

 The filing also comes at a time when power producers are betting big on renewables and making pledges to expand their green energy capacities.

The fundraising assumes significance as India has an ambitious target of having 500 GW renewable energy by 2030 and needs to add about 50 GW capacity per annum to achieve the goal.

The IPO market in India is booming. So far this year, about 235 companies have raised more than $8.6 billion, which already exceeds the total amount raised in 2023.

NTPC has reported a standalone net profit of Rs 4510.98 crore for the quarter ended June 30, 2024, up by 11% YoY, while the revenue from operations went up to Rs 44,419.22 crore in the same period.

 The revenue from operations was up by 13.5% on a year-on-year basis from Rs 39,122.25 crore in the same quarter a year ago.

 In the last one year, the shares of NTPC have increased by 78.4% while in the last 6 months, the stock has gained 37.3%. On a year-to-date basis, the stock has surged by 39%.

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Published on Sep 19, 2024, 11:25:00 AM IST