NTPC Green Energy Shares Drop Over 5% As 1-Month Lock-In Period Expires – News18
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Shares of NTPC Green Energy, a recently listed renewable energy company, fell by over 5% on December 26; What investors should know
NTPC Green Energy Shares
Shares of NTPC Green Energy, a recently listed renewable energy company, fell by over 5% on December 26 as the one-month lock-in period for anchor investors came to an end.
With the lock-in expiry, 1.83 crore shares, or 2% of the company’s total stake, became eligible for trading. This opened the opportunity for anchor investors to offload up to 50% of their holdings if they chose to do so. It’s important to note that the end of the lock-in period does not guarantee that all these shares will be sold, only that they can now be traded.
Despite the drop, the stock has gained 9% since its market debut less than a month ago, providing investors an opportunity to take partial profits.
On December 22, NTPC Green Energy entered into a Memorandum of Understanding (MoU) with the Department of Industries, Government of Bihar. The MoU covers investments in renewable energy projects in Bihar, including ground-mounted and floating solar installations, battery energy storage systems, and green hydrogen mobility initiatives.
NTPC Green Energy made its market debut on November 29, 2024, with an opening share price of Rs 111.50 on the NSE, a 3.24% premium over its IPO price of Rs 108 per share. The company raised Rs 10,000 crore through its IPO, which was fully allocated to the issuance of new equity shares with no offer-for-sale (OFS) component. NTPC Green’s IPO was the largest in India’s renewable energy sector.
The IPO proceeds of Rs 7,500 crore will be used to repay or prepay a portion of the outstanding loans of its subsidiary, NTPC Renewable Energy Ltd (NREL), with the remaining funds allocated for general corporate purposes.
NTPC Green Energy is a ‘Maharatna’ public sector enterprise, with a portfolio of renewable energy assets, including solar and wind power.
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