NTPC gains 2% on plans to sell stake in newly formed renewable energy arm

The stock so far has been an underperformer for the month and quarter when compared with the BSE benchmark.

Shares of NTPC were trading with steady gains of near 2 per cent on Wednesday in an otherwise rangebound market after the company announced its plan to hive-off stake in its newly formed formed renewable energy arm.

The stock touched a high of Rs 125.95, and was quoted at Rs 125.20 - up 1.7 per cent as of 12:45 am on the BSE. The counter had seen trades of around 2.76 lakh shares on the BSE. Meanwhile, the BSE Sensex was up 0.3 per cent.

The state-owned power company said it will reduce its stake in its newly formed renewable energy arm below 50 per cent as it plans to go public in the next fiscal year. NTPC-Renewable Energy (NREL) was formed in October 2020 and leads the company's plan to construct 60 gigawatt (Gw) of renewable energy projects in this decade.

According to a senior executive, the plan was to list NREL during the next fiscal year, “preferably before October 2022”. READ MORE

Meanwhile, the stock so far has been a underperformer so far this month and for the quarter as well. The stock is still down 1.7 per cent for the month, and down 11.8 per cent on a quarterly basis as against a 1.5 per cent gain for the BSE Sensex this month, and a loss of 2 per cent for the December quarter.



For the quarter ended September 2021, NTPC reported a 9.3 per cent YoY decline in net profit to Rs 3,211.91 crore when compared with Rs 3,504.80 crore in the corresponding quarter a year ago. Total income, however, was up 12.5 per cent at Rs 29,273 crore from Rs 26,023 crore in the same period.