NTPC share holders have made a lot of money in long-term investments. Now the question arises whether we should buy this fresh NTPC share or not.
NTPC shares price are in the news currently because the number of share holders of NTPC has almost doubled, and the main reason for this is the IPO of NTPC Green.
Actually, it was expected that the IPO price of NTPC Green would be around Rs. 60, but actually the price has come out to be Rs. 108 and the PE ratio has come out to be 259, which means valuation is a bit expensive.
Overview of NTPC Limited
Established in 1975, NTPC has grown exponentially to become India’s largest power utility company. With a diversified energy portfolio, including thermal, hydro, and renewable power, NTPC plays a crucial role in meeting the nation’s energy demands.
Its shares are actively traded on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), making it a sought-after choice for retail and institutional investors.
What effect will NTPC Green’s IPO have on NTPC Limited shares?
Both Government of Singapore and Abu Dhabi Investment Authority have participated in the IPO of NTPC Green Energy. The price band is 102 to 108 per share and the company is going to raise Rs 10 lakh crore through this IPO.
This IPO is a fresh issue in which the promoters are not looking to sell. NTPC Green is a subsidiary of NTPC that works on renewable energy projects. This company has an operational solar capacity of 3071 MW, and it is working on 31 projects in 7 states. According to SEBI Securities, the company’s revenue can grow by 79% CAGR and profit by 124% CAGR in the medium term.
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Expert Predictions for NTPC Share Price
Market analysts predict that NTPC’s share price has significant upside potential in the coming months. Here are some key reasons for their optimistic outlook:
- Focus on Renewable Energy: NTPC plans to achieve 60 GW of renewable energy capacity by 2032, aligning with India’s green energy goals. This shift is likely to attract ESG-focused investors.
- Capacity Expansion: With new thermal and hydro projects in the pipeline, NTPC is set to increase its power generation capacity, directly impacting revenue growth.
- Favorable Policies: Government initiatives to boost infrastructure and energy sectors are expected to benefit NTPC significantly.
- Global Energy Trends: With a growing global emphasis on energy security, NTPC’s strategic position in India’s energy landscape could drive its stock upwards.
Why is NTPC’s share price important for investors?
What are the risks associated with investing in NTPC shares?
What are the risks associated with investing in NTPC shares?
Conclusion
NTPC’s share price today reflects its strong position in the power sector and its potential for future growth. With a focus on renewable energy, capacity expansion, and government support, NTPC offers an attractive proposition for investors looking for stability and long-term growth.
Whether you are a seasoned investor or a beginner, NTPC remains a solid choice for diversifying your portfolio. However, always conduct thorough research and consult a financial advisor before making investment decisions.