Shares of NTPC Green Energy Ltd, the recently listed subsidiary of NTPC, crashed over 6 percent to Rs 99.18 in morning trade on February 24, extending losses for a second session as its three-month shareholder lock-in period came to an end.
According to Nuvama Alternative & Quantitative Research, nearly 18.33 crore shares, representing 2 percent of the company’s outstanding equity, will become eligible for trading. However, the end of the lock-in does not necessarily mean all these shares will hit the market—it simply allows existing shareholders the option to sell.
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NTPC continues to hold an 89 percent stake in NTPC Green Energy following its partial divestment during the IPO. NTPC Green Energy posted a strong 52.3 percent jump in net profit for the quarter, with profit after tax (PAT) rising to Rs 89.4 crore from Rs 58.7 crore in the same period last year. The renewable energy firm’s revenue grew 4.1 percent year-on-year to Rs 460.9 crore, compared to Rs 442.6 crore in Q3 FY24.
However, EBITDA (earnings before interest, taxes, depreciation, and amortization) declined 2.3 percent to Rs 384.6 crore from Rs 393.6 crore a year ago. The company’s EBITDA margin also narrowed, falling to 83.5 percent from 88.9 percent in Q3 FY24.
NTPC Green Energy shares made a modest stock market debut on the National Stock Exchange (NSE) at a premium of over 3 percent on November 27, days after the Rs 10,000 crore issue was subscribed 2.42 times in the primary market. It is a 'Maharatna' central public sector enterprise with a renewable energy portfolio, including solar and wind power assets.
At about 9:20 am, shares of the company were trading at Rs 101, lower by 4.2 percent from the last close on the NSE. NTPC Green shares haven't had a good start to the year having crashed over 17 percent year-to-date.
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