Shares of NLC India Ltd. surged over 11% on Monday after it signed a memorandum of understanding with the Rajasthan government for two projects.
The company will form a joint venture to set up a 125-megawatt lignite-based power plant and a 1,000-MW solar power plant, according to an exchange filing. "The MoU between NLC India Limited and RVUNL entails a staggering investment of more than Rs 7,000 crore."
Shares of the company rose as much as 11.57% to the highest level since Feb. 26, before paring gains to trade 5.51% higher at 10:05 a.m. This compares to a 0.17% decline in the NSE Nifty 50.
The stock has risen 195.14% in the last 12 months. Total traded volume so far in the day stood at 0.5 times its 30-day average. The relative strength index was at 48.71.
An analyst tracking the company has a 'hold' rating on the stock, according to Bloomberg data. The average 12-month analysts' price target implies an upside of 20.5%.
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