NTPC Green Energy Acquires Ayana Renewable Power for ₹19,500 Crore: Stock Surges
Introduction
NTPC Green Energy : India’s push for renewable energy has received a major boost with a landmark acquisition. In a strategic move, ONGC NTPC Green (ONGPL), a joint venture between ONGC Green and NTPC Green Energy, has acquired a 100% stake in Ayana Renewable Power for ₹19,500 crore ($2.3 billion). This acquisition is one of the largest green energy transactions in India’s history and a strong step toward a sustainable and carbon-neutral future.
Share Price Movement
Following the announcement, NTPC Green Energy Limited’s share price surged by 2.2%, reaching ₹109.84 per share from its previous close of ₹107.48. The company’s market capitalization now stands at approximately ₹91,113 crore as of February 13, 2025.
Recent Update: A Game-Changing Deal
The acquisition of Ayana Renewable Power marks ONGPL’s first major deal since its inception in November 2024. This transaction aligns with ONGC and NTPC’s Net Zero emission goals, targeted for 2038 and 2050, respectively.
Founded in 2018, Ayana Renewable Power has an extensive renewable energy portfolio of 4.1 GW, including solar, wind, and round-the-clock (RTC) projects. The company has received backing from major investors such as National Investment and Infrastructure Fund (NIIF), British International Investment (BII), and Eversource Capital.
Notably, Ayana Renewable Power has achieved a top ESG ranking, securing the #1 position in Asia and ranking among the top three globally in the renewable sector. With this acquisition, ONGPL is set to accelerate India’s renewable energy transition, reinforcing the country’s leadership in green energy production.
Q3 Financial Highlights: Strong Performance
NTPC Green Energy reported a steady financial performance in Q3FY25:
| Financial Metric | Q3FY25 | Q3FY24 (YoY Growth) | Q2FY25 (QoQ Growth) |
|---|---|---|---|
| Revenue | ₹505 Cr | +13.2% (₹446 Cr) | +0.2% (₹504 Cr) |
| Profit | ₹66 Cr | +17.9% (₹56 Cr) | +78.4% (₹37 Cr) |
This strong growth highlights the company’s expanding foothold in the renewable energy sector.
Competitors in the Renewable Sector
NTPC Green Energy competes with some of the biggest players in India’s renewable energy market, including:
- Adani Green Energy (AGEL)
- Tata Power
- JSW Energy
Notably, NTPC Green Energy’s P/E ratio stands at 264, significantly higher than the industry average of 29.24, reflecting investor confidence in the company’s future prospects.
Market Outlook: India’s Renewable Energy Growth
India continues to emerge as a global leader in renewable energy, with 46.3% of its total power capacity coming from renewables as of October 2024. The sector breakdown is as follows:
- Solar Energy: 92.12 GW
- Wind Energy: 47.72 GW
- Hydro, Biomass, and Waste-to-Energy contribute significantly to the overall mix.
With ambitious government policies and increasing private sector participation, the renewable energy market is poised for continued expansion.
Key Financial Ratios of NTPC Green Energy
| Metric | Value |
|---|---|
| Market Cap | ₹91,216 Cr. |
| Current Price | ₹108 |
| 52-Week High/Low | ₹155 / ₹105 |
| Stock P/E | 265 |
| Book Value | ₹ – |
| Dividend Yield | 0.00% |
| ROCE | 7.60% |
| ROE | 6.20% |
| Face Value | ₹10.0 |
| Debt to Equity | 2.22 |
| Industry P/E | 28.7 |
| Total Debt | ₹13,857 Cr. |
| PEG Ratio | – |
| Intrinsic Value | – |
| Graham Number | – |
| Piotroski Score | 5.00 |
| ROIC | 5.61% |
Final Thoughts
The ₹19,500 crore acquisition of Ayana Renewable Power by ONGPL is a strategic and transformational move in India’s renewable energy sector. With this deal, ONGC and NTPC reinforce their commitment to clean energy, bolstering India’s position as a global leader in green power.
As India accelerates its transition to renewable energy, this acquisition stands as a milestone in sustainable development. With strong financial growth, market expansion, and rising investor confidence, NTPC Green Energy is poised for continued success in the renewable sector.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.