NLC India shares climb on report PSU eyeing Rs 6,000 cr from sale of renewable assets

Shares of NLC India Ltd climbed over 3 per cent today in a knee-jerk reaction to reports that the company was looking to sell renewable assets worth an estimated Rs 6,000 crore  or $720 million.

As Bloomberg report, quoting an interview with Chairman M Prasanna Kumar, suggested that the the state-run coal miner and power producer would put nearly 1.4 gigawatts of mostly solar plants on the block and the transaction is likely by the end of this fiscal year. SBI Capital Markets has been appointed to advise on the transactions, as per the report. The valuation is still not final, the report added. Business Today could not verify the report independently.

Following the development, the NLC India stock climbed 2.97 per cent to Rs 234.35.

The government of India held 72.2 per cent stake in the Navratna public sector undertaking. 

Recently, Infomerics Ratings reaffirmed its rating on Rs 1,260 crore long term bank facility on the PSU. 

"The rating draws comfort from long-term power purchase agreements (PPAs) with the state distribution utilities under two-part tariff structure which ensures steady offtake, cash flows and profitability leading to comfortable debt coverage metrics," the rating agency said. 

"Captive lignite and coal mining assures guaranteed fuel supply with a control on fuel costs. The financial profile of company is marked by healthy capital structure specially, considering its infrastructure nature of business. Healthy debt coverage ratio bolsters company’s financial position. Coupled with GoI ownership, this provides superior financial flexibility to the company and ability to access funds at competitive rates," it said in March.