President of India will sell 9,70,64,562 shares of this power generation company via OFS; Company signs a PPA with GUVNL for 600-MW solar power project!

The stock gave multibagger returns of 225 per cent from its 52-week low of Rs 69.79 per share.

NLC India Ltd informed that the Board of the company proposed an offer for sale (OFS) of equity shares of face value of Rs 10 each of NLC India Ltd by its promoter, The President of India, acting through and represented by the Ministry of Coal, Government of India.
The company plans to sell up to 7 per cent of NLC India Limited's equity shares (7 per cent = 5 per cent base size + 2 per cent oversubscription option), totalling 9,70,64,562 shares with a face value of Rs 10 each, through the stock exchange mechanism on March 7, 2024 and March 11, 2024.

The broker for BSE is ICICI Securities Ltd and the broker for NSE is DAM Capital Advisors Ltd. The floor price of the offer shall be Rs 212 per share.

Additionally, NLC India Limited (NLCIL) established a fully owned subsidiary, NLC India Green Energy Limited (NIGEL), to manage future renewable energy projects. NLCIL won a 600 MW solar power project tender through a competitive bidding process and assigned the development to NIGEL. NIGEL signed a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) to procure the entire power generated by the project, which is estimated to be 1,577.88 million units annually and offset 35.5 million metric tons of carbon dioxide emissions over its lifetime. This project marks NLCIL's largest solar project to date and benefits from readily available infrastructure within the solar park and secure payment for the generated power.

NLC India Limited, a public sector company focusing on mining and power generation, established a new subsidiary "NLC India Green Energy Limited" (NIGEL) to manage their upcoming renewable energy projects, targeting 5 GW capacity by 2030 and contributing to reducing carbon emissions. This subsidiary will handle the planning, bidding, execution, and commissioning of renewable energy projects, including a 600 MW solar project in Gujarat and an 810 MW solar project in Rajasthan.

Today, shares of NLC India Ltd surged 0.31 per cent to Rs 226.70 per share with an intraday high of Rs 231.30 and an intraday low of Rs 218.30. The shares of the company have a PE of 12.2x whereas the industry PE is 25x. The stock’s 52-week high is Rs 293.60 while its 52-week low is Rs 69.79.

The company has a market cap of over Rs 31,000 crore and has been maintaining a healthy dividend payout of 27 per cent. The stock gave multibagger returns of 225 per cent from its 52-week low of Rs 69.79 per share. Investors should keep an eye on this multibagger power generation stock.

Disclaimer: The article is for informational purposes only and not investment advice.