NLC India gains on plan to raise $600 mln via ECBs

NLC India added 1.65% to Rs 233.55 after its board approved raising foreign loan through external commercial borrowings (ECBs) in any foreign currency up to the extent of $600 million through direct route.

Additionally, the companys board approved to seek external assistance from Multilateral Development Bank (MDBs) through Department of Economic Affairs (DEA) for upcoming renewable power projects.

Further, the firm has also announced to issue corporate guarantee or letter of comfort to NLC India Green Energy, a wholly owned subsidiary and Neyveli Uttar Pradesh Power, material subsidiary of the company based on the requirement.

Meanwhile, the company has received in-principle approval to invest up to Rs 994.50 crore, in one or more tranches in NLC India Renewables, a wholly owned subsidiary of the company by way of subscribing the equity shares at face value subject to the necessary approvals of DIPAM/MoC, etc.

NLC India is a 'Navratna' government of India company in the fossil fuel mining sector in India and thermal power generation. As of 31 March 2024, the Government of India held 79.20% stake in the company.

The company reported that its consolidated net profit declined 86.23% to Rs 114.23 crore on 31.04% decrease in revenue from operations to Rs 3,540.61 crore in Q4 FY24 over Q4 FY23.

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