NLC India Renewables Ltd (NIRL), the renewable energy subsidiary of state-run miner NLC India Ltd, has initiated the process for its proposed initial public offering (IPO) by appointing four book-running lead managers (BRLMs), moving ahead with the company’s plan to raise capital for expanding its clean energy business.
The company on Friday said it had appointed SBI Capital Markets Ltd, IIFL Capital Services Ltd, IDBI Capital Markets & Securities Ltd, and HDFC Bank Ltd as merchant bankers for the proposed public issue.
The proposed IPO is aimed at strengthening NIRL’s capital base and supporting its long-term growth strategy in the renewable energy sector. The company said the fund-raising would also contribute to India’s target of achieving 500 GW of non-fossil fuel-based power generation capacity by 2030.
NLC India’s former CMD Prasanna Kumar Motupalli had told Business Standard in an interview last month that the NIRL listing was targeted for September this year, with an aim to raise ₹2,000 crore.
“We have received the necessary approvals from the government to proceed with the listing. We are targeting an IPO around September. The proceeds will help fund the equity component of our expansion plans,” said Motupalli. “We will divest 25 per cent to raise ₹2,000 crore. The assets under NIRL are currently valued at around ₹8,000 crore.”
The merchant bankers will assist the company in preparing offer documents, conducting due diligence, coordinating with regulators and intermediaries, and marketing the issue.
Incorporated on June 14, 2023, NIRL serves as the dedicated renewable energy arm of NLC India Ltd. The company houses the group’s existing renewable energy portfolio of 1,785 megawatts (MW), spanning solar, wind, battery energy storage systems (BESS) and rooftop solar projects, while also spearheading future renewable energy investments of the NLC India group.
NIRL currently operates renewable energy assets in Tamil Nadu, Rajasthan and the Andaman Islands and is expanding its footprint across Tamil Nadu, Rajasthan, Gujarat, Assam, Maharashtra, Odisha, Uttar Pradesh and Punjab.
The proposed listing comes as public sector enterprises increasingly look to unlock value from specialised businesses while raising capital for expansion in sunrise sectors such as renewable energy. For NLC India, traditionally known as a lignite miner and thermal power producer, listing its renewable energy subsidiary would mark another step in its diversification towards clean energy.
