NTPC Green Energy shares fall over 6% as shareholder lock-in period ends

Shares of NTPC’s recently listed subsidiary NTPC Green Energy Ltd fell over 6 per cent to Rs 99.18 in morning trade on February 24, extending losses for the second consecutive session, as its three-month shareholder lock-in period ended.

According to Nuvama Alternative & Quantitative Research, around 18.33 crore shares representing 2 per cent of the company’s outstanding equity will become eligible for trading. However, the end of the lock-in period does not mean that all these shares will come to the market – it only gives existing shareholders the option to sell.

NTPC continues to hold 89 per cent stake in NTPC Green Energy after the partial divestment during the IPO. NTPC Green Energy reported a robust 52.3 percent rise 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 per cent year-on-year to Rs 460.9 crore as against Rs 442.6 crore in Q3 FY24. However, EBITDA (earnings before interest, tax, depreciation and amortisation) declined 2.3 per cent to Rs 384.6 crore from Rs 393.6 crore a year ago.

The company’s EBITDA margin also contracted, falling to 83.5 per cent from 88.9 per cent in Q3 FY24.

Shares of NTPC Green Energy made a modest stock market debut at a premium of over 3 percent on the National Stock Exchange (NSE) on November 27, days after its 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 around 9:20 am, the company’s shares were trading at Rs 101, down 4.2 per cent from its previous close on the NSE. Shares of NTPC Green have not had a good start to the year and are down over 17 per cent year-to-date.