On Monday, NTPC shares gained 1% after the company broadcasted that its wholly owned subsidiary has moulded a Joint Venture (JV) company with Indian Oil Corporation. At 9:18 am, NTPC shares traded 0.8% higher at Rs 175.7 on the BSE.

On June 2, NTPC Green Energy, a wholly owned subsidiary of NTPC, incorporated a new firm in a 50:50 JV with the Indian Oil Corporation, naming Indian oil NTPC Green Energy.

The JV company will develop Renewable Energy (RE) built power projects such as Solar PV, any other RE, Wind, Energy Storage, or any same combination to supply 650 MW or more renewable power on a circular basis to accommodate the requirement of the Indian Oil Corporation.

Recently, the leading green hydrogen firm Ohmium International, which designs, manufactures, and deploys advanced Proton Exchange Membrane (PEM) electrolysers, announced that its India-based subsidiary had been selected as the PEM electrolyser partner of NTPC Renewable Energy Limited (NTPC-REL), which is the renewable energy subsidiary of NTPC. This green hydrogen opportunity is India’s largest PEM electrolyser deal, being the largest worldwide.

Analysts expect developed capital expenditure for the renewable energy portfolio to enhance NTPC’s growth. According to Elara Securities, the power generation company’s stock traded at a factually low valuation of 0.9 times the FY25 price-to-book ratio.

The company holds an RE capacity addition mark of 16 GW over the next three years. The firm’s RE projects portfolio breakup is 3.3 GW custom-made, 4.6 GW under construction, and 12.6 GW under pipeline.