NLC India's Shares Surge 12% as OFS Opened for Retail Investors on Monday

Shares of NLC India surged by nearly 12% on 11 March hitting a high of ₹244.05 on National Stock Exchange. This surge came as the company's offer for sale (OFS) opened for retail investors on Monday. The offering concluded at 3:30 PM and is managed through a dedicated platform on the stock exchanges. Base price for the offering stands at ₹212 per share with each share having a face value of ₹10.

Details of the Offer for Sale

The government aims to sell up to 6.93 crore equity shares representing a 5% stake in NLC India through the OFS. Additionally, there is an option to sell an additional 2% stake or 2.77 crore shares in case of oversubscription. This move is expected to raise between ₹2,000 crore and ₹2,100 crore for the government.

At 3.30 pm, NLC India shares were trading at ₹232.15 on the NSE, marking a 6.60% increase from the previous close. Over the past year, the stock has shown remarkable growth rallying by 196%, outpacing the benchmark Nifty 50 index which rose by 30% during the same period.

The surge in share price on March 11 can also be attributed to NLC India's recent agreement with the Government of Rajasthan to establish a joint venture. This agreement involves an investment surpassing ₹7,000 crore. It includes the establishment of a 125 MW Lignite Pit head Thermal Power Plant in Bikaner district and a 1000 MW Solar Power Plant. Moreover, a Letter of Intent has been issued for the setup of an 810 MW solar power plant.

Corporate Strategy and Future Plans

NLC India aims to become a major player in the power sector, with plans to achieve a capacity of 17 GW by 2030 including more than 6 GW in renewable energy. Currently, the company is engaged in lignite and coal mining, as well as power generation, with capacities of 30.1 MTPA for lignite mining, 20 MTPA for coal mining and an installed power generation capacity of 6,071 MW. Its power stations provide electricity to Tamil Nadu, Andhra Pradesh, Telangana, Kerala, and Karnataka in the southern region. Additionally, they serve the Union Territory of Puducherry and Rajasthan through their thermal plant in Barsingsar.

Final Words

Strong performance of NLC India's shares driven by the OFS and positive company developments, highlights investor confidence in the company's growth prospects and strategic initiatives in the power sector. As NLC India continues to expand its footprint and capacity, it remains well positioned for further growth and value creation for stakeholders.