Shares of state-owned NTPC Ltd were in focus today after Malaysia's Petronas offered Rs 3,800 crore ($460 million) to buy a 20% stake in the green energy arm of India’s largest power producer in the first deal of its kind by a state-run firm. Additionally, NTPC has commissioned a first-of-its-kind commercial green coal project in Varanasi which will make torrefied charcoal from municipal waste. Nearly three years ago, NTPC had planned to make green coal (torrefied charcoal) from municipal waste, a company statement said.
NTPC shares were trading 0.83% away from the 52-week high of Rs 182.8, against the previous close of Rs 179.60 on BSE. They hit an intraday high of Rs 181.45 in early trade.
Earlier, NTPC stock opened higher at Rs 181.30 on BSE. NTPC shares have gained 34.61 per cent in one year and risen 7.54 per cent since the beginning of this year. Market cap of NTPC stood at Rs 1.73 lakh crore on BSE. Total 1.5 lakh shares of the firm changed hands amounting to a turnover of Rs 2.71 crore.
The stock hit a 52-week low of Rs 131.70 on March 21, 2022 and a 52 week high of Rs 182.80 on November 1, 2022. In terms of technicals, the relative strength index (RSI) of NTPC stock stands at 65.2, signaling it's neither trading in the overbought nor in the oversold zone. The stock has a beta of 0.5, indicating low volatility in a year. NTPC shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The offer price was higher than Rs 3000 crore NTPC had been expecting when it asked for expressions of interest in NTPC Green Energy (NGEL) last year and was 78% above the second-highest bidder. It values the NGEL at $2.3 billion, said a Reuters report.
This is the first time an Indian state-run company has planned stake sale in a renewable energy arm and comes as the country's renewables sector is attracting increasing foreign investment.
NTPC plans to use the proceeds from the sale for expansion of its non-fossil businesses. The company plans investments of more than $30 billion in the next 10 years to raise the share of non-fossil energy in its portfolio to 45% from the present 9.41%, added the Reuters report.
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