NLC India to Offer 10 Crore Shares in Renewable Energy IPO
NLC India plans to launch an initial public offering for its renewables arm, aiming to sell up to 10 crore shares.
Overview of NLC India's IPO Plans
State-owned NLC India has announced its intention to sell 10 crore equity shares from its subsidiary, NLC India Renewables Limited (NIRL), through an upcoming initial public offering (IPO). Each share will have a face value of ₹10.
Details on the Offer
This share sale will be executed as part of an offer for sale (OFS) and is subject to compliance with relevant regulations set forth by SEBI and other authorities. On January 12, the company's board provided initial approval for the IPO, which is set to involve the dilution of up to 25% of its stake in NIRL. This will take place in one or multiple phases, depending on regulatory clearances.
Future Expansion Plans
The company aims to raise approximately ₹4,000 crore through this IPO to support its expansion efforts. In a July 2025 interview with PTI, NLC India’s Chairman and Managing Director Prasanna Kumar Motupalli shared their ambitious target: increasing renewable energy capacity from 1.4 GW to 10 GW by the year 2030.
Motupalli mentioned that the company plans to file the draft red herring prospectus with SEBI in the first quarter of FY27. This filing will follow the completion of legal and financial due diligence, expected by March 2026.
Renewable Energy Strategy
NLC India is striving to exceed its 2023 goal of 10 GW for renewable energy capacity, with over 8 GW already in development. Additionally, they plan to add around 600 MW of new capacity throughout 2026.
Recent Financial Performance
NLC India experienced a notable surge in its stock value, climbing nearly 8% on November 4, following a strong financial performance in the September quarter of FY27. The company's consolidated net profit more than doubled to ₹1,381 crore, compared to ₹665 crore in the same quarter of the previous year.
Revenue from operations also improved, rising 13.3% year-on-year to ₹4,732 crore, up from ₹4,178 crore. However, the company's operating performance showed signs of strain, as EBITDA fell by 2.3% to ₹1,368 crore from ₹1,400 crore the year before. The EBITDA margin also narrowed, dropping to 28.9% from 33.5% in the prior year's September quarter, as per the company’s statements to the stock exchange.
In Summary: NLC India's upcoming IPO and growth in renewable energy capacity signal strong future ambitions.
