The board of NLC India Ltd. approved an investment of up to Rs 1,630.9 crore in one of more tranches in its wholly owned subsidiary, NLC India Renewables Ltd.
The approved investment will be conducted by way of subscription of equity shares, subject to the necessary approvals from the required stakeholders, according to an exchange filing on Monday.
The company has also approved the borrowing of a term loan in Japanese Yen equivalent to $100 million through external commercial borrowing from Sumitomo Mitsui Banking Corp.
The borrowed funds will be utilised for the capex funding of renewable projects carried by the company through its subsidiary companies.
In May, NLC India's Chairperson, Prasanna Kumar Motupalli shared the company's target to achieve 20 million tonnes of coal production and 25 MT of lignite production in the current financial year.
The state-owned energy and mining major is also positive about maintaining the Ebitda margin in the fiscal after recording a strong margin expansion in the preceding fiscal.
Shares of NLC India closed 1.34% lower at Rs 224.61 apiece on the NSE, as compared to a flat close for the benchmark Nifty 50. The stock has fallen 16.56% in the last 12 months and 9.72% on a year-to-date basis.
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