NTPC shares hit a 52-week high; top earners on Sensex, Nifty

NTPC shares hit their highest level in 52 weeks today amid reports that ArcelorMittal, Brookfield and the Canada Pension Plan Investment Board emerged among more than a dozen entities that have expressed interest in buying a stake in the company’s green energy arm — NTPC Green Energy (NGEL). Sentiment was also bullish around the stock as the state-run power generator plan aimed to raise Rs 12,000 crore. The shareholders of the company have agreed to raise funds through the issuance of non-convertible debentures on a private placement basis for capital expenditures, working capital and general corporate purposes.

Supported by the development, NTPC’s stock gained 3.58% to Rs 166.35, a new high, against the previous close of Rs 160.60 on BSE. The title was the top earner on Sensex and Nifty today. On NSE, the stock gained 3.54% to Rs 166.40 against the previous close of Rs 160.70.

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Earlier, NTPC stock opened higher at Rs 162.70 on BSE. NTPC shares have gained 40.15% in one year and are up 31.31% since the start of this year. NTPC’s market cap rose to Rs 1.58 lakh crore on BSE. A total of 6.33 lakh crore shares of the company changed hands, representing a turnover of Rs 10.43 crore.

The stock hit a 52-week low at Rs 112.35 on September 8, 2021. The Expression of Interest (EoI) for the sale of a 5-10% stake in NGEL was invited in June this year. NTPC plans to sell a minority stake, to raise up to Rs 2,000 crore. The sale of the stake in NGEL is part of NTPC’s asset monetization target, which is set at Rs 15,000 crore, for three years.

Separately, Rs 12,000 crore to be raised in one or more tranches (not exceeding 12) through a private placement will be used for capital expenditure, working capital and general corporate purposes.

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As the company is in capacity expansion mode, most of the capital expenditure needs must be financed with debt. The electrical major’s profit increased by 15.50% on an annual basis to reach Rs 3,977.7 crore for the quarter of June 2022. It stood at Rs 3,443.72 crore in the corresponding quarter of last year.

However, on a sequential basis, profit fell 23% year-on-year from Rs 5,199.51 crore at the end of the March quarter, 2022. Operating revenue in the June quarter was 43 Rs 177.14 crore, up 44.46% YoY. Quarter-over-quarter (QoQ) revenue increased by 16.42% from Rs 37,085.07 crore in the previous quarter.

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