NTPC Green Energy Ltd. (NTPCGREEN) made a robust debut on the stock market today, with its shares surging and hitting the 10% upper circuit limit. The stock opened at ₹111.50 on the NSE, which was 3.24% higher than its issue price of ₹108. By reaching a current market price (CMP) of ₹122.65, the stock has recorded a 13.56% increase from its previous close. However, in today’s trading session, the stock has hit the 10% based on intra-day price movements.
Understanding the Price Movement
- Issue Price (Previous Close): ₹108
- Opening Price Today: ₹111.50
- Current Market Price (CMP): ₹122.65
- Increase from Previous Close: ₹122.65 – ₹108 = ₹14.65
- Percentage Gain from Previous Close: (₹14.65 / ₹108) × 100 = 13.56%
While the stock is up 13.56% from its issue price (considered as the previous close for a newly listed stock), the upper circuit limit applies to the intra-day price movement from the opening price. Here’s how the intra-day movement led to the 10% upper circuit:
Intra-day Price Movement Calculation
- Opening Price: ₹111.50
- Upper Circuit Limit (10% of Opening Price): ₹111.50 × 10% = ₹11.15
- Upper Circuit Price: ₹111.50 + ₹11.15 = ₹122.65
The stock reached ₹122.65, which is exactly 10% above the opening price, triggering the upper circuit. This means that, for the day, the stock cannot trade above this price due to regulatory limits on daily price movements to curb volatility.
Key Listing Highlights
- Issue Price Band: ₹102-108 per share
- IPO Size: ₹10,000 crore
- Subscription Period: November 19 to November 22
- Investor Participation: The IPO received decent overall participation during its three-day bidding window.
Recent Developments Boosting Investor Confidence
NTPC Green Energy Ltd. recently signed a Memorandum of Understanding (MoU) with Chhattisgarh State Power Generation Co. Ltd. (CSPGCL) to develop up to 2000 MW of renewable energy projects, including floating solar power plants. This strategic partnership is expected to:
- Boost Renewable Energy Capacity: Enhance the green energy footprint in Chhattisgarh.
- Strengthen Market Position: Solidify NTPC Green’s standing in the renewable energy sector.
- Support National Targets: Align with India’s ambitious renewable energy goals.
Senior officials present at the MoU signing on November 26, 2024, included:
- Shri G. K. Gupta, Chief Engineer (CP & BD), CSPGCL
- Shri D. Joshi, General Manager (Engineering), NTPCGREEN
- Shri S. K. Katiyar, Managing Director, CSPGCL
- Shri P. K. Mishra, Regional Executive Director (WR-II), NTPC
Investor Takeaway
The impressive debut and subsequent surge in NTPC Green’s share price reflect strong investor confidence in the company’s growth prospects, particularly in the renewable energy sector. Hitting the 10% upper circuit indicates high demand and positive market sentiment, even as the overall gain from the issue price stands at 13.56%.
Investors should note that while the stock cannot trade above the upper circuit price today, its performance signals robust interest that could influence future trading sessions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are encouraged to conduct their own research or consult a financial advisor before making investment decisions.
