NTPC shares climb over 2 pc as RE arm files draft papers to raise Rs 10,000 cr via IPO

Shares of NTPC ended more than 2 per cent higher on Thursday, hitting an all-time high, after NTPC Green Energy, the renewable energy arm of the firm, filed preliminary papers with capital markets regulator Sebi to raise Rs 10,000 crore through an initial public offering. The stock ended at Rs 424, up 2.45 per cent on the BSE. During the day, it climbed 4.34 per cent to Rs 431.85 — the record high.

On the NSE, it gained 2.37 per cent to Rs 424. During the day, the stock surged 4.27 per cent to Rs 431.85 — its all-time high. The company’s market valuation jumped Rs 9,842.12 crore to Rs 4,11,138.64 crore. The stock emerged as the biggest gainer among the Sensex and Nifty firms. The initial share sale is entirely a fresh issuance of equity shares with no Offer For Sale (OFS) component, according to the Draft Red Herring Prospectus (DRHP).

The renewable energy firm said proceeds of the issue to the tune of Rs 7,500 crore will be used to repay or prepay part or all of its subsidiary NTPC Renewable Energy Ltd’s (NREL) outstanding loans while a portion will be utilised for general corporate purposes.

NTPC Green Energy is a ‘Maharatna’ central public sector enterprise with a renewable energy portfolio, including solar and wind power assets. IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the book-running lead managers to the issue.

also read: