Shares of NTPC Green Energy Ltd, a subsidiary of NTPC, fell over 6 percent to Rs 99.18 in morning trade on February 24, extending losses for the second consecutive session. The decline comes as the company’s three-month shareholder lock-in period ended, allowing some shareholders to sell their shares in the open market.
According to Nuvama Alternative & Quantitative Research, around 18.33 crore shares, or 2 percent of the company’s total equity, have become eligible for trading. However, this does not mean all these shares will be sold immediately—it only gives shareholders the option to exit.
NTPC continues to hold 89 percent stake in NTPC Green Energy despite divesting partially through initial public offer. The financials have remained strong, and net profit is 52.3 percent up to Rs 89.4 crore in recent quarter against last year’s comparable quarter’s figure of Rs 58.7 crore. The topline is 4.1 percent up to Rs 460.9 crore against Q3 FY24’s figure of Rs 442.6 crore.
However, the company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) declined 2.3 percent to Rs 384.6 crore, down from Rs 393.6 crore a year ago. The EBITDA margin also narrowed to 83.5 percent from 88.9 percent in Q3 FY24.
NTPC Green Energy listed on stock market on November 27, quoting 3 percent premium on National Stock Exchange after 2.42 times subscription to its initial public offer of Rs 10,000 crore. The ‘Maharatna’ central PSU enterprise has strong renewable power portfolio, including solar and wind power.
At 9:20 am, NTPC Green Energy’s stock stood at Rs 101, 4.2 percent below last’s close on the NSE. The stock hasn’t fared well in 2024, having dipped by over 17 percent year to date.
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Source: Moneycontrol.
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