The NLC India stock rose in early trade after the company board cleared share buyback of equity shares worth Rs 1,250 crore. The stock gained up to 11.89% to 82.75 in morning trade on BSE. At 9:30 am, the stock was trading 7% higher at 79.10 level. The public sector firm in which the government holds 83.94% stake will carry out the buyback at Rs 88 per share, 18.99% higher than Tuesday's closing price of 73.95 on the BSE.
The buyback will involve 14.19 crore shares or 9.28% stake in the company. The board of directors of the firm in a meeting held on Tuesday approved the proposal for buyback of NLC India shares. The navratna firm is engaged in lignite excavation and power generation using lignite excavated. The firm operates in two segments: lignite mining and power generation.
The mid cap stock has been gaining for the last three days and has risen 9.78% during the period. The stock opened with a gain of 10.21% in trade today. It has lost 14.74% during the last one year and fallen 27.51% since the beginning of this year.
On Monday, NLC India inked a memorandum of understanding with Coal India for formation of a joint venture company for setting up solar power projects of 3000 MW and thermal power projects of 2000 MW. The JV firm will involve equal equity participation of 50:50 and has a time line of 15 months for completion of solar power projects and 60 month
period for thermal power projects. The projects will be financed through debt equity ralio of 70:30 as per the CERC norms.