On Monday, February 24, shares of newly-listed state-run business NTPC Green Energy Ltd., a subsidiary of NTPC Ltd., plummeted as much as 8%, below the level of ₹100, as shareholder lock-in ended.
NTPC Green Energy Shares Drop Below ₹100 After 8% Slide – Key Reasons Behind the Fall
| Company | Value (₹) | Change (₹) | % Change |
|---|---|---|---|
| Mahindra & Mahindra | 2767.35 | +58.15 | 2.15% |
| Bharti Airtel | 1629.35 | +28.05 | 1.75% |
| Bajaj Finserv | 1887.65 | +29.85 | 1.61% |
| Bajaj Finance | 8464.70 | +109.75 | 1.31% |
| Nestle India | 2242.25 | +21.85 | 1.19% |
NTPC Green Energy’s three-month shareholder lock-in period ended today, according to Nuvama Alternative & Quantitative Research.
As the lock-in period expires, up to 18.33 crore shares, or 2% of the company’s outstanding stock, will be eligible for trading.
It should be emphasized that the expiration of a shareholder lock-in period does not imply that all of the shares will be sold on the open market. They are only then eligible to be exchanged.
NTPC presently controls 89% of NTPC Green Energy after selling a share at the company’s first public offering.
In the December quarter, NTPC Green Energy’s topline increased by 4.1% compared to the same time previous year, but Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) decreased by 2.3%. Margins also narrowed year over year.
NTPC Green Energy shares fell below their IPO price of ₹108 on February 11 and have been trading below that level since. The stock has fallen in six of the past seven trading sessions.
NTPC Green Energy shares are trading 7.8% down on Monday at ₹97.32, down more than 35% from their post-listing high of ₹155.
WHY NTPC Green Energy Shares Drop Below ₹100 After 8% Slide ?
NTPC Green Energy shares fell below ₹100 after an 8% drop, primarily due to the end of a shareholder lock-in period. This made 18.3 crore shares, or 2% of the company’s equity, eligible for trading, leading to increased selling pressure. Another lock-in period is set to expire on February 24, 2025, which could further impact stock movement. Despite the recent dip, NTPC Green Energy has delivered a 16.5% return since its listing in November 2024.
