NTPC Green Energy Limited (NGEL), the renewable energy arm of power producer NTPC, saw its shares hit the 10 per cent upper circuit on the NSE just hours after a subdued listing on Wednesday (November 27).

Although at the initial phase, the company's stock witnessed a the lukewarm debut, but investor optimism around India’s renewable energy potential fuelled a significant rally in the stock.

Muted Listing, Followed by Strong Gains

The shares of the company today on the Indian bourses were listed at Rs 111.50 on the NSE, a subdued 3.2 per cent premium over its IPO price of Rs 108.

On the BSE, the stock debuted slightly higher at Rs 111.60, marking a 3.3 per cent gain. However, momentum quickly picked up, with the stock reaching its upper price limit of Rs 122.65 on the NSE, a 13.56 per cent gain over the issue price.

At 12:27 pm IST, the shares traded at Rs 121.35, marking a 12.4 per cent rise and pushing the company's market capitalisation to Rs 1.02 trillion (USD 12.08 billion), surpassing its IPO valuation target of USD 10.8 billion.

The rally in the stock prices of the company highlights about the investor confidence in India's clean energy future, driven by government initiatives

Ahead of its listing, on Tuesday (November 26), NTPC Green Energy announced a joint venture with Maharashtra State Power Generation Company Limited (MAHAGENCO). The 50:50 partnership, named Mahagenco NTPC Green Energy Private Limited (MNGEPL), will focus on developing and operating renewable energy parks in Maharashtra under the UMREPP (Ultra Mega Renewable Energy Power Park) initiative.

In a regulatory filing, the company stated "The objects of the formation of Joint Venture Company are to develop, operate and maintain Renewable Energy Park(s) in Maharashtra under UMREPP and allot the Park(s) for development of Renewable Energy Project(s)."