Block Deal Impact: NTPC Shares Fall 4% Following Large Equity Transfer
NTPC, India’s top power producer, saw its stock take a hit recently. NTPC shares fall 4% after a big equity transfer shook the stock market. This drop has investors curious about what’s next for the company.
The decline happened on a busy trading day, with millions of shares changing hands. It comes as NTPC plans major fundraising and growth, making it a key player to watch. We’ll break down the details, from the equity transfer to the company’s future goals.
This article covers the stock drop, NTPC’s plans, and how it’s performing financially.
Why Did NTPC Shares Fall 4%?
On Tuesday, NTPC’s stock dropped 4%, landing at Rs 323 per share. It hit a low of Rs 321.35 during the day on the BSE. The reason? A large equity transfer sparked a sell-off.
Trading volumes spiked, with 8.49 crore shares traded at the opening bell. That’s a 51.98 times jump in activity on the BSE. Big transfers like this often rattle the stock market, pushing prices down as investors react.
How Has NTPC’s Stock Performed Lately?
NTPC’s stock has seen ups and downs over the past year. It peaked at Rs 448.30 on September 30, 2024, but fell 28% since then. The lowest it got was Rs 292.70 on February 17, 2025.
The recent 4% drop adds to this correction. Yet, some experts see room for growth in the stock market. It all depends on how NTPC handles its next steps.
NTPC’s Big Fundraising Plans
- NTPC is looking to raise Rs 18,000 crore by issuing bonds or non-convertible debentures (NCDs).
- The issuance will be done in up to 12 tranches over a year, starting after shareholder approval on June 21.
- Additionally, NTPC will issue Rs 4,000 crore in NCDs on June 17.
- These NCDs will mature on June 18, 2035.
- They carry a 6.89% interest rate.
- Funds will be used for growth projects and other operational needs.
Growth Goals for the Future
- NTPC aims to reach a total capacity of 130 gigawatts by 2032.
- Out of this, 60 GW will come from renewable energy.
- Currently, 33.7 GW of capacity is under construction.
- Planned capacity additions:
- 11.8 GW in FY26
- 9.9 GW in FY27
- Right now, NTPC has a total power capacity of 79,930 megawatts, making it India’s biggest power company.
- These expansion plans could boost NTPC’s long-term stock market value.
Financial Results: A Mixed Bag
NTPC’s latest earnings show strengths and weaknesses. In Q4 FY24, net profit rose 22.6% to Rs 5,778 crore from the prior quarter.
But operations struggled. Earnings before interest and taxes dropped 6% to Rs 11,255 crore, and profit margins fell to 25.6%. Investors weigh these numbers when eyeing the stock market.
What Do Experts Think?
Brokerages have different takes on NTPC’s stock. Here’s a quick rundown:
- Antique, JM Financial, and Elara say Buy, with targets from Rs 390 to Rs 462.
- Kotak says Sell, setting a value at Rs 320.
- Motilal Oswal stays Neutral.
Trendlyne’s average target is Rs 418, hinting at a 29% rise from now. The split views reflect uncertainty after NTPC shares fall 4% in the stock market.
| Brokerage | Rating | Target Price (Rs) |
|---|---|---|
| Antique | Buy | 390 |
| JM Financial | Buy | 462 |
| Elara | Buy | 430 |
| Kotak | Sell | 320 |
| Motilal Oswal | Neutral | – |
Final Thoughts
NTPC shares fall 4% after a large equity transfer, grabbing attention in the stock market. The drop ties to heavy trading and investor nerves. Still, NTPC’s plans to raise money and grow show confidence in the future.
With a mixed financial report and split expert opinions, the stock’s path isn’t set. Its push for 130 GW by 2032 could be a game-changer. Watch NTPC closely as it works through these changes.
Disclaimer:
This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.