Shares of NTPC Green Energy, a wholly owned subsidiary of NTPC Limited that recently debuted on Dalal Street, surged 2.2% in early morning trade on February 21, reaching ₹108.40 apiece. This rally came after the company signed a Memorandum of Understanding (MoU) with Bharat Light and Power Private Limited (BLP) to accelerate green energy objectives and support the Government of India’s efforts toward a carbon-neutral economy.
“The MoU aims to jointly explore the off-take of green hydrogen and its derivatives from NGEL and its affiliates to third parties. Opportunities for selling captured carbon or biogenic carbon from NGEL will also be in scope. NGEL, either directly or through its affiliates, shall set up the necessary infrastructure for the green hydrogen project, including renewable energy (RE) projects and regular operations under the Build-Own-Operate (BOO) mode, as part of its Net Zero commitments,” the company stated in its Thursday’s exchange filing.
India has committed to achieving net-zero emissions by 2070 and 500 GW of renewable capacity by 2030.
Recent developments
On February 12, ONGC NTPC Green Private Limited (ONGPL), a 50:50 joint venture between ONGC Green Limited (OGL) and NTPC Green Energy Limited (NGEL), signed a Share Purchase Agreement (SPA) with National Investment and Infrastructure Fund (NIIF), BII South Asia Renewables Limited, British International Investment Plc (BII), and Eversource Capital to acquire a 100% equity stake in Ayana Renewable Power Private Limited (Ayana) for an enterprise value of ₹195 billion (USD 2.3 billion), as per the company’s filing.
Ayana, a leading player in the renewable energy sector, has approximately 4.1 GW of operational and under-construction assets, along with a development pipeline of around 1 GW. A majority of Ayana’s portfolio is strategically located in resource-rich states and is contracted with high-credit-rated off-takers such as SECI, NTPC, GUVNL, and Indian Railways, among others.
“This transaction marks a significant milestone for ONGPL as its first strategic acquisition since its establishment in November 2024, accelerating its expansion into the renewable energy sector,” the company said.
Meanwhile, analysts remain bullish on the stock, emphasising the company’s strong fundamentals and solid position within India’s renewable energy sector. NTPC Green is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of September 30, 2024, and power generation in fiscal 2024, according to a CRISIL report, November 2024.
Its renewable energy portfolio encompasses both solar and wind power assets with a presence across multiple locations in more than six states, which helps mitigate the risk of location-specific generation variability.
For Q3FY25, the company reported a net profit of ₹66 crore as compared to a net profit of ₹56 crore in the same period last year, while the revenue from operations rose by 13.2% YoY to ₹505 crore.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
