NLC India gains 4% on plans to invest up to Rs 3,720 cr in renewable arm

NLC India shares rose 3.9 per cent on Thursday (November 21) and registered an intraday high of Rs 246.35 per share. The stock gained after the company on Tuesday announced to invest up to  3,720 crore for various renewable projects. 

 

The company will also acquire stakes in its arm NLC India Renewables by way of subscription for the transfer of renewable assets.

 

Around 9:50 AM, NLC India's share price was up 1.98 per cent to Rs 241.7 per share on BSE. In comparison, the BSE Sensex was down 0.57 per cent at 77,133.82. The market capitalisation of the company stood at Rs 33,605.14 crore. The 52-week high of the company was at Rs 311.65 per share and 52-week low of the company was at Rs 160.4 per share.

 

Through a filing, NLC India said that its board has given a nod to invest up to Rs 3,720 crore, in one or more tranches for the various renewable projects. 

 

It also informed to acquire a stake by way of subscribing the equity in its subsidiary NLC India Renewables for transferring renewable assets to NIRL under asset monetisation plan at its book value.

 

The net book value of renewable energy assets in the books including Capital Work in Progress (CWIP) of the ongoing projects of NLC as on September 30, 2024, is Rs 6,263 crore. 

 

The board has also issued a letter of comfort to subsidiary companies "for their borrowings based on their requirements from time to time."  

This indicates that the parent company will extend support to the subsidiaries on a case-by-case basis depending on the requirement.  NLC India Limited (formerly Neyveli Lignite Corporation Limited) is a state-owned Indian company primarily engaged in lignite mining and power generation. Established in 1956 and headquartered in Neyveli, Tamil Nadu, the company is one of the largest producers of lignite in India and operates major thermal power plants fueled by lignite.  The company has diversified into renewable energy projects, focusing on solar and wind energy to align with India's commitment to cleaner energy. The company plays a key role in the country's energy sector, providing both thermal and renewable power while contributing to the national energy security.

 

In the past one year, NLC India shares have gained 45.7 per cent against Sensex's rise of 18 per cent.