On March 11, shares of NLC India witnessed a robust surge of nearly 12% to reach a high of Rs 244.05 on the NSE as the company’s offer-for-sale (OFS) commenced for retail investors.
The OFS is scheduled to close at 3:30 pm and is being conducted through a separate window of the stock exchanges. The floor price for the issue has been fixed at Rs 212 per share, with a face value of Rs 10 per equity share.
Under the OFS, the government intends to divest up to 6.93 crore equity shares, representing a 5% stake in the state-run company. Additionally, there is an option to sell an additional stake of up to 2% or 2.77 crore shares in case of oversubscription.
As of 1:18 pm, NLC India shares were trading at Rs 235.15 on the National Stock Exchange (NSE), reflecting a 7.5% increase from the previous close. Notably, the stock has exhibited remarkable growth, rallying by 200% over the past year, outpacing the benchmark Nifty 50, which has recorded a 30% increase during the same period.
On March 11, the shares of NLC India experienced notable gains following the company’s announcement of a significant agreement with the Government of Rajasthan to establish a joint venture (JV), sparking investor enthusiasm. The memorandum of understanding (MoU) involves an investment exceeding Rs 7,000 crore.
The agreement outlines plans for the development of a 125 MW Lignite Pit-head Thermal Power Plant in the Bikaner district, along with a substantial 1000 MW Solar Power Plant. Moreover, a letter of intent (LoI) has already been issued for the establishment of an 810 MW solar power plant.
According to a statement by the company, this initiative aligns with NLC India’s corporate strategy to emerge as a dominant player in the power sector, targeting a capacity of 17 GW by 2030, with over 6 GW from renewable sources.
NLC India, a public sector undertaking, is engaged in lignite mining, coal mining, and power generation. Presently, the company boasts a lignite mining capacity of 30.1 million tonnes per annum (MTPA), coal mining capacity of 20 MTPA, and an installed power generation capacity of 6,071 MW.
NLC India’s power stations play a crucial role in supplying electricity to the five southern states of Tamil Nadu, Andhra Pradesh, Telangana, Kerala, and Karnataka. Additionally, the company also caters to the Union Territory of Puducherry. Furthermore, NLC India extends its services to Rajasthan through its thermal plant located in Barsingsar.
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