Shares of NTPC Limited surged to ₹448 on October 1, extending their gains after its subsidiary, NTPC Green Energy, signed a memorandum of understanding (MoU) with the Rajasthan government for a massive 25 GW renewable energy project.
This move comes on the back of NTPC Green Energy’s push towards expanding its renewable portfolio, making it an attractive option for those looking to invest in stocks tied to the green energy sector.
NTPC Green Energy’s IPO plans
NTPC Green Energy is set to raise ₹10,000 crore through an initial public offering (IPO) by the end of 2024, one of the largest public offerings in recent years. On September 19, the company filed a draft red herring prospectus (DRHP) with SEBI. Investors eyeing opportunities to invest in stocks have been closely monitoring this IPO, which promises to support NTPC Green’s ambitious green hydrogen, solar energy, and green ammonia projects.
Partnerships and expansions
In addition to the MoU with Rajasthan, NTPC Green Energy signed a joint venture with Mahatma Phule Renewable Energy and Infrastructure Technology Ltd (MAHAPREIT) to develop 10 GW of renewable energy parks. These strategic partnerships are expected to drive the company’s growth and reinforce NTPC’s commitment to expanding its renewable energy footprint.
This progress in the renewable space is attracting more investors to NTPC stocks as the company aligns itself with the government’s green energy push. NTPC shares have risen by 17% in the last three months, reflecting positive market sentiment.
Why invest in NTPC shares?
The NTPC Green Energy IPO offers a chance for existing NTPC shareholders to participate, with 10% of the offering reserved for them. Given the significant rise in NTPC shares, those looking to invest in stocks related to renewable energy may find this IPO particularly appealing. The ₹10,000 crore raised from the IPO will be used to support ongoing and future renewable projects, which are vital to India’s transition to green energy.
With strong financials and strategic investments, NTPC is well-positioned for long-term growth, making it an exciting prospect for investors seeking to invest in stocks in the renewable sector.
Invest safely
NTPC’s continued push into renewable energy and its upcoming ₹10,000 crore IPO for its subsidiary, NTPC Green Energy, have sparked investor interest. With MoUs and partnerships driving significant projects and NTPC shares seeing strong growth, now is a promising time to invest in NTPC stocks, particularly as the company gears up for one of the largest renewable energy IPOs in 2024.
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