India's NTPC Green Energy surges 12% on its trading debut

Investors bet on India's growing need for clean energy as shares of India's NTPC Green Energy, the renewable energy division of power producer NTPC, surged 11.9% on their trading debut Wednesday.

The last price at which the stock traded was 120.81 rupees. This is compared to an offer price of just 108 rupees. Its valuation comes out to 1.02 trillion rupees (12.08 billion dollars).

NTPC Green’s $1.2 billion IPO last week was oversubscribed two-fold, with investors flocking to this rapidly expanding sector in response to the government's drive to increase renewable energy usage.

According to Moody's Ratings India will need investments of $385 billion by 2030 in renewable energy to reach the government's goal. The strong demand helped Waaree Energies debut trade in early this year to surge by 66%.

According to Dealogic, NTPC Green is the largest renewable energy company in India. According to LSEG, by Nov. 13 this year more than $15.5bn had been raised in Indian IPOs.

The amount raised by IPOs in 2019 is almost double that of the $7.4 Billion raised in 2023.

Draft papers revealed that NTPC Green intends to use the proceeds of the share sale to pay off NTPC Renewable Energy’s debt. The parent NTPC will not dilute their stake. ($1 = 84,4400 Indian Rupees) (Reporting and editing by Varun H. K. in Bengalur)

(source: Reuters)