NTPC share price hits 52-week high after subsidiary NTPC Green Energy picks four investment banks for IPO

NTPC share price jumped 3% to touch 52-week high on Friday's session following the news that its wholly owned subsidiary, NTPC Green Energy, has chosen four investment banks to handle its initial public offering (IPO), valued at ₹10,000 crore, as reported by Moneycontrol. Since Life Insurance Corporation of India's share sale in 2022, it would be the largest by a state-owned company. The NTPC share price today opened at ₹363.10 apiece on the BSE. The stock touched an intraday high of ₹374.50 and an intraday low of ₹363. 

According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, the NTPC share price is in a strong uptrend and is now sustaining itself well above its March swing high. Expect an extension of the upmove, and traders should have a buy-on-dip approach. ₹355–360 is the demand zone, whereas ₹383–388 is the resistance zone. 

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After financial and technical bids, the following companies have been shortlisted: IDBI Capital Markets and Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management, sources with knowledge told Moneycontrol. 

They further stated that the lowest bidder was IDBI Capital. According to the news report, ten investment banks, including DAM Capital, ICICI Securities, Axis Capital, and Goldman Sachs, submitted bids for the IPO mandate.

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According to a moneycontrol news report, the persons stated that the proceeds from the NTPC Green Energy IPO will be utilised to finance current and upcoming solar energy, green hydrogen, and green ammonia projects of the NTPC subsidiary.

Mohit Bhargava, the CEO of NTPC Green, stated to CNBC-TV18 on Tuesday that the business plans to go public in FY25. He went on to say that the company is developing a pipeline with a capacity of slightly around 25–26 GW, of which about 8 GW is now being built.

Initially, NTPC intended to sell 20% of its stake to a strategic investor in NTPC Green, which it had established in April 2022 to bring together its renewable energy assets. The highest offer for this was $460 million made by Malaysian energy corporation Petronas. However, the news reports state that the company ultimately decided against the sale of stake. 

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