NLC India shares surged nearly 4% on Thursday, registering an intraday high of ₹246.35 per share after the company announced plans to invest up to ₹3,720 crore in its renewable energy subsidiary. This strategic move aligns with its efforts to strengthen its renewable portfolio and support India's transition towards cleaner energy sources. If you're considering investments in such promising ventures, now might be a good time to buy shares online for long-term benefits.
Investment plan to boost renewable energy capacity
Through an official filing, NLC India revealed its board's approval to invest ₹3,720 crore in multiple tranches to develop various renewable energy projects. This initiative also includes the acquisition of equity stakes in its subsidiary, NLC India Renewables Ltd (NIRL). The transfer of renewable assets to NIRL is part of an asset monetisation strategy and will be executed at the book value of these assets.
As of 30 September 2024, the net book value of these renewable energy assets, including ongoing projects under Capital Work in Progress (CWIP), stood at ₹6,263 crore. The decision underscores NLC's commitment to expanding its clean energy footprint while enhancing asset efficiency through monetisation.
Support for subsidiaries with financial backing
In addition to the investment announcement, NLC India has provided a letter of comfort to its subsidiaries, ensuring financial support for borrowings as required. This proactive step is expected to enable the seamless execution of renewable projects while maintaining operational stability across its subsidiaries.
The market's positive response to these developments reflects growing confidence in NLC India's vision for sustainable growth. Analysts have noted that the company's renewable initiatives could significantly enhance its valuation and align it with global clean energy trends.
Performance and market standing
At around 9:50 AM on Thursday, NLC India’s shares were trading at ₹241.7 per share, marking a 1.98% increase on the Bombay Stock Exchange (BSE), even as the broader Sensex slipped by 0.57% to 77,133.82. The company’s market capitalisation currently stands at ₹33,605.14 crore. Notably, NLC India’s shares have delivered a stellar performance over the past year, gaining 45.7% compared to Sensex’s rise of 18%.
With a 52-week high of ₹311.65 per share and a low of ₹160.4 per share, the stock demonstrates a strong potential for long-term growth. These figures make it an attractive option for investors exploring renewable energy stocks. To participate in such opportunities, it’s essential to stay informed and buy shares online through reliable platforms.
Diversification into clean energy
Founded in 1956, NLC India has primarily been involved in lignite mining and power generation. Over the years, the state-owned enterprise has diversified into renewable energy projects, focusing on solar and wind energy. This transition reflects its commitment to aligning with India's clean energy goals while securing a leadership position in both thermal and renewable energy sectors.
NLC India’s ambitious investment plan is expected to accelerate its renewable energy capacity, bolster its financial standing, and reinforce its role as a key player in India's energy transition.
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