NTPC‘s share price was wobbly on Wednesday morning even as a global brokerage firm remained bullish on the energy major.

What Happened: Goldman Sachs maintained its “buy” rating on the stock with a price target of ₹430. The analysts highlighted that NTPC is valued at around ₹4.17 lakh crore as per the sum of its part (SOTP) based target price.

Within this, NTPC Green’s valuation is seen at ₹78,700 crore. The analysts added that a ₹10,000 IPO will lead to around 13% dilution in NTPC’s stake.

On the other hand, analysts at Kotak Securities maintained the “sell” rating on the stock with a target price of ₹300, up from the earlier ₹290. The brokerage said that NTPC Green Energy’s earnings were sub-par.

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Earlier this month, NTPC Green Energy filed draft papers for an IPO with the Securities Exchange Board of India, aiming to raise ₹10,000 crore. If approved, this will be the second-biggest listing among public sector stocks since LIC went public in 2022. 

Media reports suggest that the company has urged the market regulator SEBI to expedite the approval of its IPO.

The draft papers indicated that only new shares would be issued, with existing shareholders retaining their stakes. The company planned to use ₹7,500 crore from the IPO to repay or prepay a part of the outstanding loans of its subsidiary, NTPC Renewable Energy Ltd (NREL).

Following this, NTPC’s board on September 20 approved an investment of around ₹20,921 crore in two thermal power projects, including a super thermal power project at Darlipali, with an investment of ₹11,130.98 crore.

Price Action: NTPC’s share price was up 0.082% to trade at ₹428.45 as the markets opened on Wednesday.

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