National Thermal Power Corporation (NTPC) has been in the news for the past two days as yesterday on 19 September 2024, the company board approved a massive investment of Rs. 20832 crore for two thermal power projects. The NTPC stock was ruling both Nifty 50 and BSE Sensex yesterday with close to a 4% increase in the share price, and even today, the stock rose in the early hours of the market session. Apart from this investment announcement, NTPC Green Energy, a subsidiary of NTPC has filed its DRHP with SEBI, which is another reason for the spike in its share prices. This IPO is going to be one the biggest IPOs in the country and the firm is targeting to raise ₹ 10000 crore from this offering.
NTPC Thermal Power Projects
NTPC will be using this ₹ 20832 crore of investment in primarily building two thermal power projects. One is the Sipat Super Thermal Power Project Stage III will be built from this investment. For this, the company will be using around ₹ 9790.87 crores. The remaining ₹ 11130.98 crore will be used in the Darlipali Super Thermal Power Project, Stage II. For both these projects, at the said stages, one plant will be built which will produce around 800 MW of electricity.
Apart from these two major investments, the Kayamkulam plant of NTPC will be launching a pilot project for generating electricity from methanol. The company has already signed the MoU with BHEL to check for methanol firing in the gas turbine system, which is already there in the plant. Producing electricity from methanol can help in bettering the environment, as this is a clean-burning fuel, which emits less toxic and harmful gases and particles. This will be the first phase of methanol test firing which will take around a year and if the company achieves success in this it will not only boost the company’s profit as the cost of electricity production will come down, but also add to the environment and reduce carbon footprints.
NTPC Green Energy IPO
NTPC has been in the news for its green energy arm as well for which it has filed the Draft Red Herring Prospectus (DRHP). Around ₹ 10000 crore will be raised from this IPO as proposed in the DRHP which will be entirely from fresh equity shares issue and no offer for sale (OFS).
What does it mean for the investors of NTPC?
When NTPC Green Energy is listed, the shareholders of NTPC will have the benefit of bidding under the shareholder category of ₹ 2 lakh too, which can up the maximum limit to ₹ 4 lakh crore.
In the past year, the NTPC stock offered around 75% while on a YTD basis, it has gone up by 36% until 19 September 2024 and both these returns are far ahead of Nifty 50’s return of 27% and 16% respectively.
Wrapping up
If you are an NTPC stakeholder, then you should keep an eye on the NTPC stock price movement, as there can be good opportunities given the latest developments in the company. In addition, if you want to buy stakes in NTPC Green Energy then you need to keep an eye on the upcoming NTPC Green Energy ipo.
Source: MoneyControl
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