Shares of India's NTPC Green Energy, the renewable energy arm of power producer NTPC surged 11.9% in trading debut on Wednesday as investors bet on the country's growing clean energy needs.
The stock last traded at 120.81 rupees as of 10:14 a.m. IST, compared to its offer price of 108 rupees, giving it a valuation of 1.02 trillion rupees ($12.08 billion).
NTPC Green's $1.2 billion IPO garnered bids worth $1.8 billion last week and was oversubscribed by two times, as investors flocked to the rapidly-expanding sector amid the government's push to increase the usage of renewable energy.
As per Moody's Ratings, India needs investments worth $385 billion in reneweable energy by 2030 to meet the government's target. Strong demand also helped a 66% surge in peer Waaree Energies' debut trade earlier this year.
NTPC Green's IPO is the biggest in the country's renewable energy industry, as per Dealogic data. As of Nov. 13, close to 300 companies have raised more than $15.5 billion in Indian IPOs this year, as per LSEG data.
The amount raised from IPOs this year is nearly double the $7.4 billion raised in 2023.
NTPC Green plans to use proceeds from the share sale to repay its unit NTPC Renewable Energy's debt, with parent NTPC not diluting their stake, draft papers showed.
