NLC India zooms 12% on floating OFS, inking Rs 7,000-cr Rajasthan JV

Shares of NLC India surged nearly 12 percent on March 11 to hit the day’s high of Rs 244.05 on the NSE as the company’s offer-for-sale (OFS) opened for retail investors.

The issue will close at 3:30pm and the sale is being conducted on a separate window of the stock exchanges. The floor price for the issue is set at Rs 212 per share. The face value is Rs 10 per equity share.

Through the OFS, the government proposes to sell up to 6.93 crore equity shares or a 5 percent stake in the state-run company with an option to sell an additional stake of up to 2 percent or 2.77 crore shares in case of oversubscription.

At 1:18pm, NLC India shares were trading at Rs 235.15 on the National Stock Exchange (NSE), up 7.5 percent from the previous close. The multibagger stock has rallied 200 percent in the last one year, outperforming benchmark Nifty 50 which has risen 30 percent during this period.

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The stock on March 11 also gained on account of NLC India signing of an agreement with the Government of Rajasthan for the formation of a joint venture (JV). The MoU entails an investment of more than Rs 7,000 crore.

It outlines the establishment of a 125 MW Lignite Pit-head Thermal Power Plant in Bikaner district and a massive 1000 MW Solar Power Plant. Additionally, a LoI for the setup of an 810 MW solar power plant has already been issued.

“This is in line with the corporate plan of NLC India to become a power major of 17 GW capacity with more than 6 GW renewable capacity by 2030, the company said in a statement.

NLC India is a public sector undertaking that is involved in lignite mining, coal mining, and power generation. The company has a lignite mining capacity of 30.1 million tonnes per annum (MTPA), coal mining capacity of 20 MTPA, and installed power generation capacity of 6,071 MW at present.

Also Read | NLC India, Rajasthan govt ink pact to set up 1125 MW energy projects

Its power stations cater to the five southern states of Tamil Nadu, Andhra Pradesh, Telangana, Kerala and Karnataka, It also caters to the Union Territory of Puducherry, as well as Rajasthan through its thermal plant in Barsingsar.

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