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NTPC Green Energy shares worth ₹55,000 crore free up for trade; Here’s how the stock moved

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Shares of NTPC Green Energy Ltd., the demerged green energy unit of state-run NTPC Ltd. will be in focus on Wednesday, November 26, as its shareholder lock-in period comes to an end.According to Nuvama Alternative & Quantitative Research, as many as 580.6 crore shares of NTPC Green Energy will free up for trade today when the one-year lock-in period ends.

The number of shares that get freed up for trade in today’s session amount to 69% of the company’s total outstanding equity. Based on Tuesday’s closing price, the number of shares that get freed up for trade amount to ₹55,158.9 crore.

It must be noted that the end of the shareholder lock-in does not mean all the shares would be sold in the open market, they only become eligible to be traded.
NTPC Green Energy shares had listed on the bourses on November 27, 2024, after its ₹10,000 crore IPO was subscribed 2.55 times during the three-day bidding process.NTPC Green Energy features among those companies who currently have promoter shareholding above the Mininum Public Shareholding threshold of 75%.

According to the September quarter shareholding pattern, promoter NTPC had a 89.01% stake in NTPC Green Energy. Among the public shareholders, Mutual Funds had a 3.25% stake, of which, Nippon Life India had a 2.26% stake, while India’s largest insurance company, Life Insurance Corporation of India had a 1.2% stake.

The lack of free float means less holdings for retail investors, but 13.37 lakh small retail shareholders, or those with authorized share capital of up to ₹2 lakh, had a 3.84% stake as of September 30.

Shares of NTPC Green Energy recovered from the lows of the day towards the close of trade on Tuesday to end 0.2% lower at ₹95.09. The stock currently trades below its IPO price of ₹108, and 38% below its post-listing high of ₹155.

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