Why NTPC Green Energy shares gained on Friday — Explained

Shares of NTPC Green Energy Ltd. rallied as much as 6% on Friday after the company announced the commencement of commercial operations for the first part of its 200-megawatt (MW) solar project in Gujarat.

In a filing to the stock exchanges on December 27, the renewable energy arm of state-owned NTPC Ltd. stated that it had commenced commercial operations for the first phase of the Gujarat Solar PV Project in Sadla.

The company revealed that, based on certification from the Gujarat Energy Development Agency on December 26, the initial capacity of 37.5 MW out of the 200 MW project began operations.

The project was awarded under the GUVNL/500 MW/Solar (Phase XI) tender by NTPC Renewable Energy Limited, a wholly owned subsidiary of NTPC Green Energy Ltd. It was declared commercially operational effective December 21, the company noted in its stock exchange filing.

With this milestone, the total installed and commercial capacity of the NTPC group has increased to 76,598.18 MW.

Shares of NTPC Green Energy Ltd. surged 5.8% to an intraday high of ₹133.35 apiece on the BSE. However, the stock later pared some gains, trading 2.8% higher at ₹129.58 apiece by 1 PM.

The shares, which debuted on the stock exchanges on November 27 at ₹111.5 apiece — a 3.2% premium to the IPO price of ₹108 — have gained 19.5% since listing.

Meanwhile, the one-month lock-in period for anchor investors ended on December 26, making 18.3 crore shares available for trading in the open market. The NTPC Green Energy IPO was open from November 19 to November 22.