NTPC shares reach a 52-week high after subsidiary NTPC Green Energy selects four investment banks for IPO

NTPC shares: On Friday’s session, NTPC’s stock surged 3%, reaching a 52-week high. This uptick followed the announcement that its subsidiary, NTPC Green Energy, has enlisted the services of four investment banks to manage its upcoming initial public offering (IPO), which is valued at ₹10,000 crore, according to Moneycontrol. If successful, it would mark the largest IPO by a state-owned company since the 2022 share sale of Life Insurance Corporation of India. NTPC commenced trading at ₹363.10 on the BSE today, reaching an intraday peak of ₹374.50 and a trough of ₹363.  -NTPC shares

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One observes that NTPC’s share price is firmly in an upward trajectory, comfortably surpassing its March swing high. He anticipates a continuation of this upward momentum and advises traders to adopt a buy-on-dip strategy. The demand zone is identified at ₹355–360, while the resistance zone lies between ₹383–388.

According to sources familiar with the matter, following the assessment of financial and technical bids, the selected companies include IDBI Capital Markets and Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management, as reported by Moneycontrol.

Additionally, it was mentioned that IDBI Capital emerged as the lowest bidder. The report indicates that ten investment banks, including DAM Capital, ICICI Securities, Axis Capital, and Goldman Sachs, competed for the IPO mandate by submitting bids.

As per a Moneycontrol news report, individuals mentioned that the funds generated from the NTPC Green Energy IPO would be directed toward financing the existing and future solar energy, green hydrogen, and green ammonia projects of the NTPC subsidiary.

In an interview with CNBC-TV18 on Tuesday, Mohit Bhargava, the CEO of NTPC Green, announced that the company aims to go public in FY25. He elaborated that the company is currently in the process of developing a pipeline with a capacity of approximately 25–26 GW, out of which around 8 GW is currently under construction.

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Initially, NTPC planned to divest 20% of its stake to a strategic investor in NTPC Green, a subsidiary formed in April 2022 to consolidate its renewable energy assets. The highest bid, amounting to $460 million, was presented by the Malaysian energy corporation Petronas. However, reports indicate that the company ultimately opted against the stake sale.