NTPC Green Energy Faces Selling Pressure as Lock-in Period Expires

Stock market chart showing NTPC Green IPO price decline with a 6% drop, red downward trend, and investors analyzing market data. — Image Source: AI-Generated

NTPC Green IPO price fell 6% as the shareholder lock-in period ended, allowing 18.33 crore shares to trade. Despite strong earnings growth, EBITDA margins declined. NTPC retains an 89% stake. Investors watch for selling pressure and market trends. Read the full analysis for insights

Shares of NTPC Green Energy Ltd (NGEL) witnessed a sharp decline of over 6% to ₹99.18 in morning trade on February 24, 2025, marking the second consecutive session of losses. The drop coincides with the expiration of the company’s three-month shareholder lock-in period, allowing certain investors to sell their holdings.

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Lock-in Expiry and Market Impact

According to Nuvama Alternative & Quantitative Research, nearly 18.33 crore shares, representing 2% of NTPC Green Energy’s total equity, are now eligible for trading. However, this does not mean all these shares will flood the market immediately—it simply grants shareholders the option to offload their stakes (Source: Moneycontrol).

This development follows a trend seen in several recent IPOs, where share prices experience temporary selling pressure post-lock-in expiry. Investors keen on upcoming IPOs in India can check out our latest coverage on IPO filings to stay updated.

NTPC’s Stake and Financial Performance

Despite the share price dip, NTPC continues to hold an 89% stake in NTPC Green Energy following its partial divestment through the IPO. The company has demonstrated strong financial growth:

Net profit surged 52.3% YoY to ₹89.4 crore, up from ₹58.7 crore in the same period last year.
Revenue increased 4.1% YoY to ₹460.9 crore, compared to ₹442.6 crore in Q3 FY24.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fell 2.3% YoY to ₹384.6 crore from ₹393.6 crore.
The EBITDA margin narrowed to 83.5%, down from 88.9% in Q3 FY24.

These figures indicate steady revenue growth, but the margin compression suggests potential cost pressures. If you’re interested in tracking IPO GMP trends, visit our dedicated section on IPO Grey Market Premium (GMP).

Stock Market Debut and Business Overview

NTPC Green Energy made its stock market debut on November 27, 2024, listing at a 3% premium on the National Stock Exchange (NSE). The company’s ₹10,000 crore IPO had generated substantial interest, being subscribed 2.42 times in the primary market.

As a Maharatna central public sector enterprise (CPSE), NTPC Green Energy plays a vital role in India’s renewable energy expansion, with a portfolio that includes solar and wind power projects. Given the growing focus on green energy investments, tracking developments in India’s clean energy sector can help investors make informed decisions.

Conclusion and Investor Guidance

While the lock-in period expiry has led to selling pressure, the long-term outlook for NTPC Green Energy remains strong, driven by its renewable energy focus and backing from NTPC. Investors should monitor how institutional holders react to the stock movement in the coming weeks.

Disclaimer: The views and investment insights presented in this article are based on publicly available information and analysis. They do not constitute financial advice. Investors are advised to conduct their own research or consult certified professionals before making any investment decisions. As per our Money Invest Trend portal, we strive to provide accurate and timely updates on financial markets and IPOs.