NLC India’s Renewable Energy Arm NIRL to Launch Rs 4,000 Crore IPO in Q2 FY27
In a significant development for the Indian renewable energy sector, NLC India’s renewable energy arm NIRL is planning to launch an initial public offering (IPO) of around Rs 4,000 crore in the second quarter of the next financial year (Q2 FY27) to part-fund its expansion plans.
In an exclusive interview with PTI, Chairman and Managing Director of NLC India Ltd, Prasanna Kumar Motupalli, revealed that the company is targeting to ramp up its renewable energy capacity from the current 1.4 GW to 10 GW by 2030. To achieve this ambitious goal, NIRL plans to raise Rs 4,000 crore through the IPO route, with the aim of listing on the Indian stock market.
‘We are targeting Rs 4,000 crore through IPO route…So by September we will be in a position to ramp up our renewable assets through NIRL and by March 2026 we will be able to complete the legal and the financial due diligence and in the first quarter of 2026-27 we will be going for DRHP through the SEBI,’ Motupalli explained.
NLC India Ltd, which is in the process of increasing its renewable energy capacity by almost seven times, plans to invest Rs 50,000-Rs 60,000 crore in this endeavour. The equity portion of this investment will be funded through internal resources, with the remaining amount raised through debt.
The Cabinet Committee on Economic Affairs (CCEA) on July 16 gave a special exemption to NLC India Ltd from investment guidelines that govern government-owned firms, which will enable the company to invest Rs 7,000 crore in NIRL. This exemption will also allow NLCIL to invest in various projects directly or through joint ventures, without seeking approvals, which are a must for all Navratna Central Public Sector Enterprises.
Currently, NLCIL operates seven renewable energy assets with a total installed capacity of 2 GW, which are either operational or close to commercial operation. The company has a total installed capacity of 6 GW, comprising 4.6 GW thermal capacity. NLC India is the first company in the country to add 1 GW renewable capacity and has plans to scale up its green energy capacity to 32 GW by 2047.
With its eye on the future, NLC India is poised to play a significant role in India’s renewable energy sector. As the company gears up to launch its IPO, investors are likely to be keenly watching its performance. Will it be a golden opportunity for Indian investors to diversify their portfolios and tap into the growing renewable energy sector? Only time will tell.
