India's NTPC Green Energy rises 12% in trading debut (updated)

NTPC Green Energy

27/11/2024 04:49

(Adds details, background from paragraph 2)
       Nov 27 (Reuters) - Shares of India's NTPC Green Energy
 NTPG.NS , the renewable energy arm of power producer NTPC
 NTPC.NS  surged 11.9% in trading debut on Wednesday as
investors bet on the country's growing clean energy needs.
    The stock last traded at 120.81 rupees as of 10:14 a.m. IST,
compared to its offer price of 108 rupees, giving it a valuation
of 1.02 trillion rupees ($12.08 billion).
    NTPC Green's $1.2 billion IPO garnered bids worth $1.8
billion last week and was oversubscribed by two times, as
investors flocked to the rapidly-expanding sector amid the
government's push to increase the usage of renewable energy.
    As per Moody's Ratings, India needs investments worth $385
billion in reneweable energy by 2030 to meet the government's
target. Strong demand also helped a 66% surge in peer Waaree
Energies'  WAAN.NS  debut trade earlier this year.
    NTPC Green's IPO is the biggest in the country's renewable
energy industry, as per Dealogic data. As of Nov. 13, close to
300 companies have raised more than $15.5 billion in Indian IPOs
this year, as per LSEG data.
    The amount raised from IPOs this year is nearly double the
$7.4 billion raised in 2023. 
    NTPC Green plans to use proceeds from the share sale to
repay its unit NTPC Renewable Energy's debt, with parent NTPC
not diluting their stake, draft papers showed.

($1 = 84.4400 Indian rupees)

 (Reporting by Manvi Pant in Bengaluru; Editing by Varun H K)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))