NTPC Green Energy shares update on Gujarat solar PV project; stock reacts

NTPC Green Energy Ltd on Thursday announced an update on its wholly-owned subsidiary NTPC Renewable Energy Ltd's Gujarat solar PV project. "We wish to inform you that on the basis of certificate dated 18.12.2024 issued by Gujarat Energy Development Agency, second part capacity of 30 MW out of 150 MW Gujarat Solar PV Project, Mesanka, Gujarat of NTPC Renewable Energy Limited (a wholly owned subsidiary of NTPC Green Energy Limited) is declared on Commercial Operation w.e.f. 00:00 Hrs of 11.12.2024," it stated.

Following this announcement, the recently-listed stock rose 1.84 per cent to hit a day high of Rs 138.05. Around 16.39 lakh shares were last seen changing hands on BSE. The figure was lower than the two-week average volume of 27.19 lakh shares. Turnover on the counter came at Rs 21.97 crore, commanding a market capitalisation (m-cap) of Rs 1,14,471.69 crore. There were 22,54,290 buy orders against sell orders of 5,72,104 shares.

Prior to this, the company's arm -- NTPC Renewable Energy Ltd (NTPC REL) -- secured a 500 MW solar power contract in SECI auction. "NTPC REL, a wholly owned subsidiary of NTPC Green Energy Limited, has emerged as a successful bidder in the e-reverse auction conducted by the Solar Energy Corporation of India (SECI) for the development of 2000 MW ISTSconnected Solar PV Power Projects. The auction, held on December 9, 2024, also includes the establishment of Energy Storage Systems (ESS) with a total capacity of 1000 MW/4000 MWh. NTPC REL secured 500 MW of solar power capacity at a tariff of Rs. 3.52 per kWh. As per the terms of the tender, the company is required to set up an Energy Storage System (ESS) of 250 MW/1000 MWh along with the contracted solar capacity. The Letter of Award (LOA) from SECI is awaited," it stated.

NTPC's diversification into green energy and its foray into nuclear power will be positive for the company over the medium- to short-term, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. He added that investors can add NTPC Green on dips as the stock has potential to perform. The firm is a wholly-owned subsidiary of state-run NTPC Ltd.

NTPC Green is a renewable energy company that focuses on undertaking projects via organic and inorganic routes. The company, incorporated in April 2022, had an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects across six states as of August 31, 2024.

As of September 2024, promoters held an 89.01 per cent stake in the renewable energy company.