NTPC Green Energy shares rise after listing. Should you hold or sell?

NTPC Green Energy market listing: By 10:40 am, NTPC Green shares climbed further to Rs 120.80, signalling strong post-listing momentum. The upward movement in NTPC Green's share price defied expectations of a muted debut.

In Short

• NTPC Green shares climb after modest listing on NSE
• Experts recommend holding NTPC Green for long-term growth
• Renewable energy focus drives optimism in NTPC Green's future

Shares of NTPC Green Energy surged after a modest listing on Dalal Street, raising questions among investors about their next move. The stock debuted at Rs 111.50 on the National Stock Exchange (NSE), a 3.25% increase from its issue price of Rs 108.

By 10:40 am, it climbed further to Rs 120.80, signalling strong post-listing momentum. The upward movement in NTPC Green's share price defied expectations of a muted debut.

With the stock gaining traction, retail investors are now evaluating whether to hold or sell their shares. Market experts offered guidance, highlighting the company’s long-term potential while addressing short-term concerns.

Prashanth Tapse, Senior Vice President (Research) at Mehta Equities Ltd., said the listing met expectations of a flat debut, considering valuations and market conditions. However, he stressed the company’s long-term growth prospects, particularly in India’s renewable energy sector.

“For long-term investors, we believe NTPC Green Energy Ltd. is a great opportunity to invest in a leading player in India’s renewable energy sector, backed by the formidable resources and expertise of NTPC Ltd. With ambitious renewable energy targets, the company is well-equipped to capitalize on the increasing demand for sustainable energy solutions. NTPC Green's strategic expansion into green hydrogen, green chemicals, and battery storage further enhances its growth prospects, positioning it at the forefront of India’s energy transition,” he said.

Tapse recommended holding the stock for the long term, despite the possibility of short-term volatility. He also advised non-allotted investors to accumulate shares if the price dips closer to the issue price.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., also expressed optimism, noting that the listing exceeded modest expectations due to improved market sentiment.

“The IPO had received a moderate overall subscription of 2.55 times, reflecting measured investor interest. As a wholly-owned subsidiary of NTPC Ltd., the company benefits from a robust and diversified portfolio across geographies and off-takers. Its consistent top-line growth is encouraging, though temporary fluctuations in profitability and margins remain a concern,” she said.

Nyati recommended holding the stock with a stop loss at ₹110, citing its strong long-term potential in the renewable energy space.

Both experts stressed on NTPC Green’s strategic positioning in India’s transition to renewable energy.

While the company’s aggressive pricing and market fluctuations pose short-term challenges, its focus on green hydrogen and sustainable energy solutions offers significant growth opportunities.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)