Shares of NTPC their hit 52-week high today amid reports that ArcelorMittal, Brookfield and Canada Pension Plan Investment Board emerged among over dozen entities that expressed interest to purchase stake in the firm’s green energy arm — NTPC Green Energy (NGEL). Sentiment was also upbeat around the stock on the state run electricity generator’s plan to raise Rs 12,000 crore. The shareholders of the firm have given nod to raise funds through issuing of non-convertible debentures on a private placement basis for capital expenditure, working capital and general corporate purposes.
Buoyed by the development, NTPC stock gained 3.58 per cent to Rs 166.35, a fresh high, against the previous close of Rs 160.60 on BSE. The stock was the top gainer on Sensex and Nifty today. On NSE, the stock gained 3.54 per cent to Rs 166.40 against the previous close of Rs 160.70.
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Earlier, NTPC stock opened higher at Rs 162.70 on BSE. NTPC shares have gained 40.15 per cent in one year and risen 31.31 per cent since the beginning of this year. Market cap of NTPC rose to Rs 1.58 lakh crore on BSE. Total 6.33 lakh shares of the firm changed hands amounting to a turnover of Rs 10.43 crore.
The stock hit a 52-week low of Rs 112.35 on September 8, 2021. The expression of interest (EoI) for selling of stake of 5 to 10 per cent in NGEL was invited in June this year. NTPC plans to sell minority stake, to raise up to Rs 2,000 crore. The stake sale in NGEL is part of the asset monetisation target of NTPC, which is pegged at Rs 15,000 crore, for three years.
Separately, Rs 12,000 crore to be raised in one or more tranches (not exceeding 12) through private placement will be used as capital expenditure, working capital and for general corporate purposes.
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As the company is in capacity expansion mode, major portion of the capital expenditure requirement has to be funded by debt. The power major’s profit rose 15.50 per cent on a year-on-year basis to Rs 3977.7 crore for the June 2022 quarter. It stood at Rs 3443.72 crore in the corresponding quarter last year.
However, on a sequential basis, profit slipped 23 per cent YoY from Rs 5,199.51 crore at the end of March 2022 quarter. Revenue from operations in the June quarter stood at Rs 43,177.14 crore, rising 44.46 per cent YoY. The revenue on a quarter-on-quarter (QoQ) rose 16.42 per cent from Rs 37,085.07 crore in the preceding quarter.