State-run power utility major hits all-time high as renewable subsidiary files DRHP for Rs 10,000 crore IPO; Jefferies maintains buy for 17% potential gains

Shares of the state-run utility major NTPC in Thursday's session (September 19)  rallied steeply after the company's renewable subsidiary NTPC Green Energy has filed DRHP for a Rs 10,000 crore public issue. The entire issue will be a fresh share sale. 

The stock scaled a new life-time high of Rs 431.85 per share after gaining over 4 per cent.

The country's leading power generating company- NTPC filed IPO papers for its green energy arm- NTPC Green Energy (NGE). Through the issue, the state-run Maharatna aims to raise around $1.2 billion or Rs 10,000 crore. 

NTPC in the last one year has delivered a decent return of over 77 per cent.

How global brokerages view NTPC stock?

Global brokerage Jefferies maintained its buy call on the stock with a target price of Rs 485, implying over 17 per cent gains from the previous close. The brokerage believes the company is moving towards Its 60 GW 2032 RE target and has 24 GW pipeline in place. The brokerage notes that RE capacity ramp-up together with pilot project on green hydrogen will remain key re-rating triggers.

In the medium term, double-digit EPS CAGR remain re-rating driver, added Jefferies.