Shares of NTPC were the top gainers on Sensex and Nifty today amid a report that the state-owned power generator is in race to buy debt-laden SKS Power Generation. Other bidders eyeing the company are Reliance Industries, Gujarat-based Torrent Power and Singapore-based Vantage Point Asset Management. Sentiment around the PSU stock also turned positive after NTPC’s arm NTPC Green Energy Ltd (NGEL) invited bids for rupee denominated term loan of up to Rs 9,000 crore.
NTPC stock gained 3.81% to Rs 174.2 against the previous close of Rs 167.80 on BSE. On NSE, the stock gained 3.78 per cent to Rs 174.25 against the previous close of Rs 167.90 Earlier, NTPC stock opened higher at Rs 169.05 on BSE.
NTPC shares have gained 31.17 per cent in one year and risen 4.39 per cent since the beginning of this year. Market cap of NTPC rose to Rs 1.68 lakh crore on BSE. Total 6.87 lakh shares of the firm changed hands amounting to a turnover of Rs 11.80 crore. The stock hit a 52-week high of Rs 182.80 on November 1, 2022 and a 52-week low of Rs 123.70 on February 24, 2022.
In terms of technicals, the relative strength index (RSI) of NTPC stock stands at 52.4, signaling it’s trading neither in the overbought nor in oversold zone. NTPC stock has a one-year beta of 0.6, indicating very low volatility during the period. NTPC shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
According to a report by The Economic Times, these companies have indicated their willingness to increase bids for SKS Power Generation to what the company owes creditors.
Meanwhile, the bid document showed that NGEL intends to raise fresh debt and repay outstanding liability of Rs 8,200 crore towards NTPC by March 31, 2023 along with applicable interest cost. Also, additional funds to the tune of Rs 800 crore would be required for additional debt liability and for balance capex payments of projects which are yet to achieve full commercial operations, it stated.
NGEL has invited offer for rupee term loan of up to Rs 9,000 crore, it said. The minimum amount of loan offered by banks/FIs (financial institutions) shall be Rs 1,000 crore and in multiples of Rs 500 crore thereafter, it stated.
Also read: This multibagger stock stages strong rebound, jumps 48% in 3 sessions
Also read: Stock market trading hours may be extended up to 5 pm: Report
