NLC India to raise $600 million via ECB, invest ₹994 crore in NLC India Renewables – EQ
In Short – NLC India plans to raise $600 million through External Commercial Borrowings (ECB) and invest ₹994 crore in NLC India Renewables. This investment will enhance its renewable energy portfolio, supporting India’s green energy targets. The funds will be used to expand and develop renewable energy projects, reinforcing NLC India’s commitment to sustainable and eco-friendly power generation.
In Details – State-owned firm NLC India Ltd (NLCIL) on Monday (June 10) said its board has approved the plan to raise up to $600 million through External Commercial Borrowings (ECB) to meet its business requirements. “To raise foreign currency loan through External Commercial Borrowings (ECB) in any foreign currency as per business requirement to the extent of 600 million USD through Direct route, subject to RBI guidelines,” NLC India said in a regulatory filing. Additionally, the board granted in-principle approval for an investment of up to ₹994.50 crore in NLC India Renewables Ltd, a wholly-owned subsidiary of NLC India.
This investment will be made in one or more tranches by subscribing to equity shares at face value, pending necessary approvals from DIPAM/MoC, among others. “In-principle approval to invest up to ₹994.50 crore, in one or more tranches in NLC India Renewables Limited, wholly owned subsidiary of the Company by way of subscribing the Equity Shares at Face Value subject to the necessary approvals of DIPAM/MoC etc,” the company said. NLC India reported an 86.2% drop in consolidated net profit to ₹114.23 crore for the March quarter due to lower income. The company had posted a consolidated profit of ₹829.67 crore in the year-ago period, NLC India said in a filing to the BSE.
In a statement the company said its profit after tax for the year ended March 31, 2024, was at ₹1,868 crore over ₹1,426 crore for the year ended March 31, 2023, registering a growth of 31%. The PSU is a navratna company under the Ministry of Coal. Its core business is mining and power generation. Shares of NLC India Ltd ended at ₹230.35, up by ₹9.35, or 4.23% on the BSE. Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
