State-run NTPC's green energy arm, NTPC Green Energy Ltd (NGEL) has entered into a joint venture agreement (JVA) with Mahatma Phule Renewable Energy and Infrastructure Technology Ltd (MAHAPREIT). The pact was signed on September 25, 2024.
"The JVA was signed by Shri Rajiv Gupta, CEO (NGEL) and Shri Bipin Shrimali, MD (MAHAPREIT) at Mumbai in the presence of other senior officials from NGEL and MAHAPREIT. The JV Company will undertake development of 10 GW of Renewable Energy Parks and Projects in Maharashtra or in any other state of India," the wholly-owned subsidiary of NTPC stated in a BSE filing today.
This agreement comes at a time when NGEL filed its initial public offering (IPO) draft red herring prospectus (DRHP) with market regulator Sebi to raise Rs 10,000 crore. The initial share sale will be an entirely fresh issue with no offer-for-sale (OFS) component. The company said it will use the IPO proceeds to repay debt and general corporate purposes.
The issue will be managed by a team of book-running lead managers, including IDBI Capital Markets & Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management, as outlined in the draft documents.
Kranthi Bathini, director of equity strategy at WealthMills Securities, said NTPC Green IPO can attract significant investor interest, especially as green energy remains a key focus in the near term, adding that NTPC's move also signals its intent to diversify earnings by exploring various energy avenues.
India's IPO landscape has been more vibrant this year, with around 235 companies raising over Rs 71,000 crore so far.
Meanwhile, NTPC shares rose 0.36 per cent today to hit a record high of Rs 437.90. The stock eventually settled 0.44 per cent lower at Rs 434.40 against its previous close of Rs 436.30.
"NTPC's stock has indicated a strong pullback from Rs 395 levels and has given a decisive breakout on daily charts with strong bias witnessed. It can rise further in the coming days. We suggest to buying it for an upside potential targets of Rs 446-480 levels, keeping stop loss at Rs 415," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.