NLC India Green Energy Limited (NIGEL) | Stock Updates

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NLC India inks Power Purchase Agreement with GRIDCO Limited!

NLC India, a prominent power generation company engaged in lignite mining and power generation using lignite as well as renewable energy sources, has made a significant announcement regarding a power purchase agreement signed by the company.

According to the report, NLC India Limited (NLCIL) and GRIDCO Limited inked a Power Purchase Agreement (PPA) yesterday at GRIDCO Limited’s office in Bhubaneswar.

This agreement pertains to the procurement of 400 MW during Stage 1 and another 400 MW during Stage 2 of NLCIL’s upcoming Neyveli Talabira Super Critical Thermal Power Station (NTTPP) in the state of Odisha.

With this accord, the company has successfully secured commitments for its entire 2400 MW capacity for Stage 1 of the Neyveli Talabira Super Critical Thermal Power Station.

The Power Purchase Agreement was formally executed in the esteemed presence of Prasanna Kumar Motupalli, Chairman and Managing Director, Trilochan Panda, MD of GRIDCO Limited, and Gagan Bihari Swain (Director).

Furthermore, the company has previously entered into similar agreements with Tamil Nadu, Kerala, and Pondicherry for the supply of 1,500 MW, 400 MW, and 100 MW of power, respectively, from the Neyveli Talabira Super Critical Thermal Power Station Stage-I. In the current phase, NLCIL has secured a 400 MW commitment from GRIDCO Odisha for the second phase of the 1x800 MW capacity of NTTPP.

In response to this development, the company’s shares began trading at Rs 132.35 per share, marking a 3.3% increase from the previous day’s closing price of Rs 128.35 per share on the BSE.

At the time of writing this article, shares are trading at Rs 134.15 per share on the BSE, reflecting a 4.52% increase from the previous day’s closing price. The current market capitalization of the company stands at Rs 18,602 crore, and over the past year, the stock has delivered an impressive return of 98%.

Shifting the focus to the company’s most recent shareholding pattern, we observe that Foreign Institutional Investors (FIIs) have increased their ownership from 0.67% to 0.81%, as per the most recent update. In contrast, Domestic Institutional Investors (DIIs) have also raised their stake from 6.89% to 8.02% over the same period."

Stock Chart (Monthly time frame)

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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NLC India’s green arm secures PPA for 600 MW solar project with Gujarat Urja Vikas Nigam

The company’s stock has generated an impressive multibagger return of over 320% in the past three years.

NLC India Green Energy Limited (NIGEL), a recently created subsidiary of NLC India, has secured a prestigious order for a renewable energy project. The subsidiary is exclusively dedicated to spearheading future Renewable Energy Projects.

Order Details

As per the company’s latest exchange filling, NLCIL has secured a 600 MW Solar Power Project in the GSECL Khavda Solar Park tender, which was floated by Gujarat Urja Vikas Nigam Limited (GUVNL) through a competitive bidding process. Aligning with the policy of developing renewable energy projects under its wholly owned green energy subsidiary, the responsibility for project development has been entrusted to NIGEL.

In its inaugural move, NIGEL has formalised the Power Purchase Agreement (PPA) with GUVNL for the proposed 600 MW Solar Power Project located at Khavda Solar Park in Bhuj District, Gujarat. GUVNL will exclusively procure the entire power generated by the project, with the PPA tariff set at Rs 2.705/kW per hour.

The project’s anticipated annual electricity generation is substantial, reaching 1,577.88 million Units, contributing to a cumulative electricity production of 39.447 billion Units over its operational lifetime. Impressively, the solar project is poised to offset an estimated 35.5 million Metric Tons of Carbon dioxide emissions throughout its entire lifespan.

Share Performance

Today, the company’s shares commenced trading at Rs 226.30 per share, which is higher compared to the preceding day’s closing figure of Rs 226 per share. During the intraday trading session, the stock reached highs and lows of Rs 231.30 and Rs 218.30, respectively. Eventually, the company’s shares concluded at Rs 227.85 per share on the BSE.

The market capitalisation of the company stands at Rs 31,594 crore. Additionally, the stock has delivered an impressive return of around 180% in the past year and a multibagger 323% return in the past three years.

In terms of ownership, the Promoter holds 79.20%, while Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) hold 1.21% and 8.85% respectively. The remaining 6.44% is held by public investors, as per the most recent update.

Stock Price Chart (Daily)

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Business Overview

NLC India is actively involved in the mining of lignite and power generation, utilising both lignite and Renewable Energy Sources. As a distinguished Navaratna Company, NLC India Limited, formerly known as Neyveli Lignite Corporation Limited, holds a prominent position in the fossil fuel mining sector and thermal power generation in India. Operating under the ownership of the Ministry of Coal, Government of India, NLC India is a key player contributing to the nation’s energy landscape.

Investors must keep this stock on their radar.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.