Power Generation Company Incorporates Joint Venture Company with Assam Power Distribution Company Ltd (APDCL)
The stock is up by 23 per cent from its 52-week low of Rs 185.85 per share and has given multibagger returns of 400 per cent in 5 years.
NLC India Renewables Limited (NIRL), a wholly-owned subsidiary of NLC India Limited (NLCIL), has officially formed a Joint Venture Company (JVC) with Assam Power Distribution Company Limited (APDCL). The newly incorporated entity, named "NIRL Assam Renewables Limited," will see equity participation in the ratio of 51:49 between NIRL and APDCL, respectively. The Ministry of Corporate Affairs issued the Certificate of Incorporation for NIRL Assam Renewables Limited on May 7, 2025. This strategic partnership aligns with the renewable energy sector and aims to undertake Green Energy Projects within the state of Assam to fulfil renewable power obligations.
NIRL Assam Renewables Limited, established on May 7th, 2025, is a joint venture where NIRL holds a 51 PER CENT controlling stake. This does constitute a related party transaction as NIRL is a wholly-owned subsidiary of NLCIL. The primary objective of this JVC is to develop, operate, and maintain Renewable Energy Projects in Assam, which directly aligns with the growing focus on green energy. The formation of this JVC received the concurrence/approval of the Department of Investment and Public Asset Management (DIPAM), under the Ministry of Coal, Government of India, as communicated on March 7th, 2025. The consideration involves a cash investment through the subscription of shares at a face value of Rs 10 each, with NIRL acquiring 51 per cent of the shares in the newly formed entity.
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About NLC India Ltd
NLC India Ltd is a government-owned company in India primarily involved in lignite mining and thermal power generation. It operates mines in Tamil Nadu and Rajasthan, using lignite to produce electricity. This power is then sold to various states in India, including Tamil Nadu, Rajasthan, Andhra Pradesh, Kerala, Karnataka and Puducherry. As a Navratna company, NLC India holds a significant position in the Indian energy sector.
The company has a market cap of over Rs 30,000 crore and has been maintaining a healthy dividend payout of 25.4 per cent. The stock is up by 23 per cent from its 52-week low of Rs 185.85 per share and has given multibagger returns of 400 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.