A leading renewable energy company’s stock experienced a significant decline as millions of shares were released from trading restrictions. The expiration of a one-month lock-in period made 2% of total shares available for trading, highlighting the common market dynamics where such events can create downward pressure on stock prices.
Share Price Movement
The share price of NTPC Green Energy Limited went down by 5.04 percent to Rs. 126.3 per share on Thursday, an increase from its previous close of Rs. 133.01 per share. The market capitalisation now stands at approximately Rs. 1,06,424 crore as of December 26, 2024.
What Happened
NTPC Green Energy shares fell 5.04% as 183 million shares (2% of total) became eligible for trading after a 1-month lock-in period. Lock-in periods restrict selling to stabilise prices, but expiry can increase selling pressure, impacting stock prices.
Financial Highlights
According to its recent filing, in the half year ending September 2024, NTPC Green Energy’s consolidated revenue from operations has increased by 7.3 percent YOY from Rs. 1,008 crore in H2 FY24 to Rs. 1,082 crore in H2 FY25.
The company’s consolidated net profit has decreased by 15.8 percent, from Rs. 208 crore in H2 FY24 to Rs. 175 crore in H2 FY25.
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Market Outlook
India’s renewable energy sector is poised for robust growth, driven by ambitious targets and increased investments. The government aims to achieve 500 GW of non-fossil-based electricity generation by 2030, with 13.5 GW of new renewable capacity added in 2023.
Electricity demand is projected to grow by 8% in 2024 due to economic expansion and rising adoption of electric vehicles and heat pumps. Investments include Rs. 8,500 crore for solar infrastructure and Rs. 17,490 crore for the Green Hydrogen Mission, boosting capacity to 170 GW by March 2025.
Shareholding Pattern
As of the November 2024 shareholding pattern, NTPC Green Energy Limited is primarily held by the promoters at 89.01 percent, foreign institutional investors hold 2.24 percent, and the public with 3.54 percent.
About Company
NTPC Green Energy Limited (NGEL), a wholly-owned subsidiary of NTPC Limited, is driving India’s ambitions. Established in April 2022, NGEL focuses on solar and wind energy, with an operational capacity of 3,320 MW as of September 2024. With its projects spanning six states, the company plays a pivotal role in reducing carbon emissions and boosting India’s clean energy footprint.
NTPC Green Energy aims to expand its capacity to 60 GW by 2032. It generates revenue through long-term power purchase agreements with government agencies. Backed by NTPC Limited’s expertise, NGEL is strategically positioned to develop large-scale renewable projects, explore green hydrogen, and become a key player in India’s sustainable energy transformation.
Written By Fazal Ul Vahab C H
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