NHPC shares in news today as board approves raising of Rs 6,100 crore

Shares of hydropower producer NHPC Ltd are in news today as its board has approved a proposal to raise Rs 6,100 crore in debt in 2024-25.

NHPC stock zoomed 3.34% to close at Rs 88.56 in the previous session on BSE.  Market cap of the firm climbed to Rs 88,958 crore. The power sector stock has surged 127% in a year and gained 34% in 2024.

NHPC stock also logged a high turnover of Rs 109.66 crore on Wednesday with 124.77 lakh shares changing hands on BSE. The stock touched its record high of Rs 115.85 on February 5 this year and a 52 week low of Rs 38.70 on March 28, 2023.

In terms of technicals, the relative strength index (RSI) of the stock stands at 54, signaling it's trading neither in the overbought nor in the oversold zone. It has a one-year beta of 1, signaling average volatility during the period.

NHPC shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day  100 day, 150 day and 200 day moving averages.

“The Board of Directors of NHPC in its meeting held on Wednesday considered and approved the proposal for raising of debt up to Rs 6,100 crore during 2024-25 through non-convertible Corporate Bonds in one or more tranches on private placement basis, term loans or external commercial borrowing in tranches,” a BSE filing said.

Further, the Board also approved the closure of Loktak Downstream Hydroelectric Corporation Limited (a Subsidiary Company of NHPC Limited and Joint Venture with Govt. of Manipur), subject to the approval of DIPAM, Ministry of Power and Govt. of Manipur, it stated.

NHPC reported a 26.77 per cent fall in its consolidated net profit to Rs 491.90 crore as against Rs 671.67 crore in the corresponding period of last fiscal. Revenue from operations slipped 20.42 per cent in the December 2023 quarter compared to Rs 2,055.50 crore in the year-ago period. NHPC also announced an interim dividend of Rs 1.4 a share for the financial year 2023-24.

NHPC Limited is engaged in the generation and sale of bulk power to various power utilities. The company’s other business activities include project management / construction contracts/ consultancy assignment services and trading of power. The company’s power stations include Salal, Dulhasti, Kishanganga, Nimoo Bazgo, Chutak, Baira Siul, Tanakpur, Dhauliganga, Rangit, Loktak, Indira Saga, Chamera - I, Uri - I, Chamera - II and Omkareshwa.