NTPC Green Energy Share Price Falls Over 7% as Shareholders Lock-in Period Ends

NTPC Green Energy share price witnessed a sharp decline of over 7% on Monday, February 24, following the expiration of the three-month shareholder lock-in period. The stock fell by 7.31% to ₹97.83 apiece on the National Stock Exchange (NSE) at 9:27 am.

The company’s market capitalisation currently stands at ₹82,434.78 crore. With the lock-in period ending, up to 18.33 crore equity shares have become eligible for trading. However, this does not necessarily mean that these shares will be sold in the open market immediately.

Strong Q3 Financial Performance

Despite the stock decline, NTPC Green Energy reported robust financial results for the third quarter of the financial year 2024-25. The company posted an 18% year-on-year (YoY) increase in consolidated profit after tax (PAT) to ₹65.61 crore, compared to ₹55.61 crore in the same period last year.

Revenue from operations rose by 13.2% to ₹505.08 crore in Q3 FY25, up from ₹446.14 crore in the corresponding quarter of the previous fiscal year. Additionally, total income surged by 25.46% to ₹581.46 crore in the December quarter, compared to ₹463.46 crore a year ago.

Stock Market Debut and IPO Details

NTPC Green Energy shares were listed in November 2024, debuting at a 3.33% premium over the issue price of ₹108 on the Bombay Stock Exchange (BSE). On the NSE, the stock opened at ₹111.5, reflecting a 3.24% gain.

The company’s initial public offering (IPO) was priced in the range of ₹102-₹108 per share and was subscribed 2.40 times. The IPO proceeds, estimated at ₹7,500 crore at the upper band, were earmarked to repay or prepay outstanding loans of its subsidiary, NTPC Renewable Energy Ltd (NREL), with a portion allocated for general corporate purposes.

Strategic Partnership to Drive Green Energy Goals

NTPC Green Energy recently signed a memorandum of understanding (MoU) with Bharat Light and Power Private Ltd. The agreement aims to accelerate India’s green energy transition and support the government’s push toward a carbon-neutral economy.

According to the exchange filing, the MoU focuses on exploring the off-take of green hydrogen and its derivatives by NTPC Green Energy and its affiliates to third parties. Additionally, opportunities for selling captured carbon or biogenic carbon from NTPC Green Energy will also be evaluated.

As part of its Net Zero commitments, NTPC Green Energy and its affiliates plan to establish infrastructure for green hydrogen projects, including renewable energy projects and ongoing operations under a Build-Own-Operate (BOO) model.

Conclusion

While the end of the shareholder lock-in period triggered a decline in NTPC Green Energy’s stock price, the company continues to exhibit strong financial performance and strategic expansion in the renewable energy sector. Investors will closely watch how these developments influence the company’s market position in the coming months.

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