Shares of NTPC Green Energy Ltd, which is a subsidiary of power generation company NTPC, rose more than 9% on Wednesday, December 4.
The company on Wednesday extended gains after hitting the 10% upper circuit in the previous session on Thursday.
The stock reached a record high of Rs 155.35 on the National Stock Exchange. With the rise on Wednesday, the stock has made a nearly 44% increase from its initial public offering (IPO) price of Rs 108 per share.
To be sure, NTPC Green Energy made its debut on 27 November at Rs 111.5 apiece, a modest 3.2% premium over the issue price.
Investors who secured a single lot of 138 shares during the IPO would have seen a profit of Rs 6,534 at Wednesdayโs intraday high, based on the minimum investment of Rs 14,904.
NTPC Green Energy, a subsidiary of state-owned NTPC Limited, is the largest renewable energy public sector unit in terms of operational capacity, according to a CRISIL report. Its portfolio spans solar and wind power projects across several states.
The IPO, which ran from November 19 to November 22, aimed to raise Rs 10,000 crore through fresh issuance of shares. Proceeds were intended to fund NTPC Renewable Energy Ltd, the companyโs wholly-owned subsidiary, for repayment or prepayment of outstanding borrowings.
Although the IPO generated significant market buzz, it was oversubscribed by only 2.55 times, with the non-institutional investor category falling short at 85% subscription.
Analysts have suggested that NTPC Green Energyโs focus on the rapidly growing renewable energy sector positions it as a strong contender for long-term growth, despite the IPOโs relatively muted subscription figures.
NTPC Green Energy is also a ‘Maharatna‘ central public sector enterprise. Its renewable energy portfolio includes solar and wind power assets.
