NTPC Green Energy Falls Below IPO Price: What Investors Need to Know
Shares of NTPC Green Energy Ltd., a subsidiary of NTPC Ltd., fell by 8% on Monday, February 24, trading below Rs.100. The decline came as the three-month shareholder lock-in period ended, allowing 18.33 crore shares (2% of the company's total equity) to be traded in the open market.
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What is a Shareholder Lock-In Period for ?
A shareholder lock-in period is a restriction that prevents investors from selling their shares for a certain time after an IPO. The end of this period does not mean all shares will be sold immediately, but they become eligible for trading.
Stock Performance Since IPO
- NTPC Green Energy shares were listed at Rs.108 per share.
- The stock has been declining since February 11 and has fallen in six out of the last seven trading sessions.
- It has corrected over 35% from its post-listing high of Rs.155.
Financial Performance in Q3
For the December quarter, NTPC Green Energy reported a 4.1% increase in revenue compared to the same period last year. However, its EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) fell by 2.3%, and profit margins also shrank.
Current Market Status
On Monday, NTPC Green Energy shares were trading at Rs.97.32, reflecting a 7.8% decline. Despite NTPC Ltd. holding an 89% stake, the market reaction suggests investor concerns about future performance.
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