InvestorQ : Why have NTPC shares touched a 52 week high in last few days?
shrinidhi Rajan made post

Why have NTPC shares touched a 52 week high in last few days?

4 weeks ago

NTPC recently hit a 52-week high of Rs166.35 after major global investors like ArcelorMittal, Brookfield and Canada Pension Fund evinced interest in buying a stake in NTPC Green Energy (NGEL), the alternate energy arm of NTPC. NTPC has outperformed the market by gaining 25% in the last six months against the Nifty gain of just 6% in the same period. In the last one year, NTPC is up 41% compared to just 1.4% for the benchmark index. This is the coming together of various green initiatives that is likely to reposition NTPC.

In June this year, NTPC had invited expression of interest (EOI) for stake sale of between 5% and 10% in NGEL. NTPC planned to raise Rs2,000 crore by selling a minority stake in NGEL. The stake sale of NGEL would be part of the much larger asset monetisation target of NTPC, which is pegged at Rs 15,000 crore over the next 3 years. Along with listing NGEL, NTPC will also monetize its stake in NTPC Vidyut Vyapar Nigam Ltd as well as in NEEPCO. The NEEPCO stake had bene acquired by the government as part of its divestment drive.

NTPC plans to reach 60 gigawatt (GW) of renewable capacity by 2032 and it has a mandate to partly fund its growth and expansion with internal asset monetization. Currently, NTPC has about 2,500 MW of operational renewable energy assets with 4,500 MW currently under construction. By the year 2032, NTPC targets to achieve total installed capacity of 130 GW, of which 60 GW would be renewable capacity. NGEL will be the holding company for all the alternate and renewable power assets of the NTPC group.

Markets are also impressed by the new revenue plans of NTPC. It plans to enhance its presence in consultancy services, power trading and ancillary services with nearly 25% market share in ancillary services and storage by 2032. NTPC will also foray into the Hydrogen Economy as well as the production of Green Chemicals.