NTPC Shares Trade Lower As Green Subsidiary Signs JVA with MAHAGENCO; Details

Shares of NTPC fell almost by a percentage at open on the NSE on February 29, a day after it reported that subsidiary NTPC Green Energy had signed a JVA with the Maharashtra State Power Generation Company (MAHAGENCO).

NTPC shares have rallied 95 per cent in a year and risen 52.37 per cent in six months.

Market cap of NTPC stood at Rs 3.22 lakh crore on BSE. Total 1.98 lakh shares of the firm changed hands amounting to a turnover of Rs 6.62 crore.

“The company will be formed under the joint venture and will develop GW-scale renewable energy parks and undertake projects of this scale in a phased manner. The agreement aligns with the green energy objectives of NTPC and is another step in the government of India’s efforts towards energy transition,” said NTPC in a communication to BSE.

In an exchange filing, post market hours, NTPC said that its fully owned subsidiary NTPC Green Energy had signed a joint venture agreement with MAHAGENCO for the development of Renewable Energy Parks in the state of Maharashtra.

The company under the JVA will develop GW-scale renewable energy parks and undertake projects of this scale in a phased manner.

NTPC has a total installed capacity, including JVs and subsidiaries, of approximately 74 GW. The subsidiary was formed as a part of NTPC’s goal of increasing its renewable energy portfolio. “NTPC Group has ambitious plans of attaining 60 GW of renewable energy capacity by the year 2032. Currently, it has 3.4 GW of installed RE capacity and more than 22 GW under pipeline,” a PIB release noted.

The stock hit a 52-week low of Rs 166.65 on April 4, 2023 and touched a 52 week high of Rs 347.85 on February 21, 2024. The stock has a beta of 0.6, indicating low volatility in a year

In terms of technicals, the relative strength index (RSI) of NTPC stock stands at 54.4, signaling it’s neither trading in the overbought nor in the oversold zone.. NTPC shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

The NTPC Group has ambitious plans of attaining 60 GW of renewable energy capacity by 2032. Currently, it has 3.4 GW of installed RE capacity and more than 22 GW under pipeline. NTPC is committed to supporting Maharashtra’s and India’s decarbonisation goals.

MAHAGENCO has an installed capacity of about 13,170 MW including 9,540 MW thermal, 2,580 MW hydro, 672 MW gas and 378 MW solar-based power plant capacity.