Stocks

NTPC up nearly 3% on ₹15,000 crore asset monetisation plan by 2024

Our Bureau Mumbai | Updated on October 04, 2021

NTPC was trading at ₹143.75 on the BSE, up ₹3.90 or 2.79 per cent

Shares of public sector power giant NTPC gained nearly 3 per cent during the morning trade on Monday on reports of the company’s plans to raise ₹15,000 crore by 2024 through the listing of its three units — NTPC Renewable Energy, North Eastern Electric Power Corp (NEEPCO) and NTPC Vidyut Vyapar Nigam.

At 10:46 am, NTPC was trading at ₹143.75 on the BSE, up ₹3.90 or 2.79 per cent. It had opened at ₹143.65 as against the previous close of ₹139.85. It hit an intraday high of ₹144.15 and a low of ₹140.45.

On the NSE, it was trading at ₹143.75, up ₹3.85 or 2.75 per cent.

Also read: NTPC moves to raise ₹15,000 cr by listing arms

According to a senior company official, NTPC is planning to sell shares in NTPC Renewable Energy within a year. Meanwhile, it is planning initial public offerings of Neepco and NTPC NVVN by March 2024, as per previous reports.

The official added that the NTPC Renewable Energy’s target will be to have a minimum of 10 gigawatts of generation capacity by the time it is listed.

At the company’s 45th annual general meeting (AGM), its Chairman and Managing Director, Gurdeep Singh had said that in line with the government’s target of 450 GW of renewable energy (RE) capacity by 2030, NTPC has also revised its RE targets to 60 GW from 30 GW by 2030.

Meanwhile, Singh also informed that the Board has recommended a final dividend of 31.50 per cent of paid-up capital i.e ₹3.15 per share in FY21, subject to the approval of shareholders at the AGM in addition to the interim dividend of 30 per cent of paid-up capital.

NTPC’s stocks have rallied over 22 per cent in September on the BSE, being the top gainer in the BSE-30 index in the month as per Kotak Securities.

Emkay Global Securities maintained a ‘Buy’ rating on the stock with a target price of ₹180 stating that the company is poised to benefit from the rapid expansion of its RE portfolio and steady earnings from the existing coal assets.

“NTPC has been very competitive in bidding for the majority of RE projects lately. NTPC has doubled its RE portfolio in the last 18 months, with ~7GW of projects currently either commissioned, under implementation or bid successfully. NTPC has recently won 1.9GW in the auction of CPSU Scheme-II (tranche-III of 5GW). In FY21, NTPC had a 15% market share in RE bids in the country. With a better demand scenario, we expect higher utilization of coal assets as RE additions alone cannot fulfil incremental demand. Further, there has been an overall improvement in the performance of key subsidiaries in FY21,” it had said in a recent note.

“We maintain Buy on NTPC with a Sept'22 TP of ₹180. We believe that the improving RoE profile and a clear focus on RE will lead to a re-rating. NTPC's ability to source low-cost debt will enable it to resourcefully attain its RE plan. NTPC is expected to add ~25GW of thermal and RE projects at the group level in the medium term,” it had added.

Published on October 04, 2021

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