NTPC Green Energy IPO Boosts Shares to Record Highs

Shares of NTPC rose over 2% to hit an all-time high after NTPC Green Energy, its renewable energy arm, filed for an IPO to raise Rs 10,000 crore. The firm plans to use Rs 7,500 crore to repay or prepay its subsidiary's loans while the rest will go towards general corporate purposes.

Shares of NTPC ended over 2 per cent higher on Thursday, hitting a new all-time high. The surge followed the news that NTPC Green Energy, the company's renewable energy arm, filed preliminary IPO papers with the capital market regulator Sebi to raise Rs 10,000 crore through an initial public offering.

NTPC's stock closed at Rs 424, up 2.45 per cent on the BSE, after peaking at Rs 431.85 during the day. On the NSE, the stock similarly ended at Rs 424, rising 2.37 per cent after surging to an all-time high of Rs 431.85 during the intraday session.

The market valuation of NTPC jumped by Rs 9,842.12 crore, reaching Rs 4,11,138.64 crore. The IPO involves a fresh issuance of equity shares without any Offer For Sale component, according to the Draft Red Herring Prospectus. The IPO proceeds, amounting to Rs 7,500 crore, will be used to repay or prepay loans of its subsidiary, NREL, while the remaining funds will be allocated for general corporate purposes.

(With inputs from agencies.)