NTPC Green Energy Shares Drop Below ₹100 as Lock-In Period Ends, Extending Recent Losses

NTPC Green Energy shares fell below ₹100 after an 8% decline on February 24, dropping below their IPO price of ₹108. The stock has been in a downward trend, falling in six of the last seven trading sessions and losing over 17% year-to-date. The decline coincides with the end of the three-month shareholder lock-in period, making 18.33 crore shares (2% of total equity) eligible for trading.

The stock dropped 7.31% to ₹97.83 on the NSE, bringing its market capitalization to ₹82,434.78 crore. Despite the drop, NTPC Green Energy posted strong Q3 FY25 results, with net profit rising 18% year-on-year to ₹65.61 crore and revenue increasing 13.2% to ₹505.08 crore. Another report highlighted a 52.3% YoY surge in net profit to ₹89.4 crore, while revenue grew 4.1% to ₹460.9 crore.

However, EBITDA declined 2.3% to ₹384.6 crore, and EBITDA margins fell to 83.5% from 88.9% in Q3 FY24. NTPC retains an 89% stake in NTPC Green Energy following its November 2024 IPO, which debuted at a 3% premium. The ₹10,000 crore IPO was subscribed 2.42 times, with proceeds allocated for loan repayment and corporate purposes. Recently, NTPC Green signed an MoU with Bharat Light and Power to explore green hydrogen and carbon capture projects, supporting India’s carbon neutrality goals.

NTPC Green Energy Shares Drop Below ₹100 as Lock-In Period Ends, Extending Recent Losses

NTPC Green Energy shares dropped below ₹100 after an 8% decline on Monday, February 24, falling below their IPO price of ₹108. The stock has been on a downward trend, declining in six of the last seven trading sessions.

The decline comes as the three-month shareholder lock-in period ends, making 18.33 crore shares (2% of the company’s total equity) eligible for trading, according to Nuvama Alternative & Quantitative Research.

NTPC Green Energy shares fell over 7% on Monday, February 24, as the shareholder lock-in period ended, making 18.33 crore equity shares eligible for trading. The stock dropped 7.31% to ₹97.83 on the NSE at 9:27 AM, bringing the company’s market capitalization to ₹82,434.78 crore.

Despite the decline, NTPC Green Energy reported an 18% year-on-year increase in consolidated net profit, reaching ₹65.61 crore in Q3 FY25, compared to ₹55.61 crore in the same quarter last year. Revenue from operations grew 13.2% to ₹505.08 crore, while total income saw a 25.46% rise to ₹581.46 crore.

Listed in November 2024, NTPC Green Energy debuted at a 3.33% premium over its IPO price of ₹108 on the BSE and ₹111.5 on the NSE. The IPO, priced between ₹102-₹108 per share, was subscribed 2.40 times, with proceeds of ₹7,500 crore allocated to repaying NTPC Renewable Energy Ltd.’s loans and general corporate purposes.

Recently, NTPC Green signed an MoU with Bharat Light and Power Private Ltd. to explore green hydrogen and carbon capture opportunities, supporting the government’s carbon neutrality goals.

NTPC Green Energy shares fell over 6% to ₹99.18 in morning trade on February 24, extending losses for a second consecutive session as the company’s three-month shareholder lock-in period ended. The stock has dropped more than 17% year-to-date.

According to Nuvama Alternative & Quantitative Research, around 18.33 crore shares, representing 2% of NTPC Green Energy’s outstanding equity, became eligible for trading. However, this does not mean all these shares will be sold immediately—it simply provides existing shareholders the option to do so.

Despite the decline, NTPC Green Energy reported strong financial results, with a 52.3% year-on-year increase in net profit, reaching ₹89.4 crore in Q3 FY25, compared to ₹58.7 crore in the same period last year. Revenue grew 4.1% year-on-year to ₹460.9 crore. However, EBITDA declined 2.3% to ₹384.6 crore, while the EBITDA margin narrowed to 83.5% from 88.9% in Q3 FY24.

NTPC retains an 89% stake in NTPC Green Energy following its IPO, which debuted on the NSE on November 27 at a modest 3% premium. The ₹10,000 crore issue was subscribed 2.42 times. The company, a ‘Maharatna’ public sector enterprise, focuses on renewable energy, including solar and wind power projects.

At 9:20 AM, NTPC Green Energy shares were trading at ₹101, down 4.2% from the previous close.