NLC India Ltd is preparing to raise ₹4,500 crore via an IPO for its renewable energy arm by mid-2025, aligning with the government’s push for public sector companies to list their green energy divisions.

NLC India Plans ₹4,500 Crore IPO for Renewable Energy Unit by Mid-2025

State-owned NLC India Ltd is gearing up to launch an initial public offering (IPO) for its renewable energy subsidiary, NLC India Renewables Ltd (NLCIRL), aiming to raise approximately ₹4,500 crore between April and June 2025. The company plans to divest 51% of its shares in the green energy arm, according to Prasanna Kumar Motupalli, Chairman and Managing Director of NLC India.

Currently, NLC India is in the process of transferring its renewable energy assets, primarily solar projects valued at around ₹8,000 crore, to NLCIRL. Of its total 6,071.06MW power generation capacity, 1,431MW is derived from renewable sources. The company operates 1,380MW of solar power plants in Tamil Nadu and the Andaman & Nicobar Islands, along with a 51MW wind power plant in Tirunelveli, Tamil Nadu.

NLC India has set an ambitious target to contribute 10.11GW of renewable energy by 2030, in line with the government’s objective of installing 500GW of non-fossil fuel capacity. The company’s annual report for FY24 outlines plans for various renewable projects across Tamil Nadu and other states, contingent upon technical and commercial viability. Additionally, NLC India is participating in solar park projects initiated by different state governments and has joined the International Solar Alliance.

Established in FY24, NLCIRL aims to consolidate, monetize, and optimize the value of NLC’s renewable assets for efficient management. The company has also formed a step-down subsidiary, NLC India Green Energy Ltd, to spearhead future renewable energy initiatives.

NLC India is also modernizing its power infrastructure to meet evolving energy demands while maintaining sustainability. The company is exploring innovative projects, such as converting lignite to methanol and developing green hydrogen initiatives, as mentioned in the CMD’s message to shareholders in the FY24 annual report.

The government is encouraging public sector companies to list their green energy subsidiaries on stock exchanges to create value for shareholders rather than selling assets to private entities. NTPC Green Energy Ltd has already filed draft papers for a ₹10,000 crore IPO, expected to open in early November. Similarly, SJVN Ltd plans to list its green energy business, SJVN Green Energy Ltd, and Solar Energy Corp. of India (Seci) is planning a public offer within the next two years.

This move is part of the government’s broader asset monetization and disinvestment strategy. As of FY24, a total of ₹3.58 trillion has been raised over three years under the ₹6 trillion National Monetization Pipeline, with ₹1.56 trillion raised in FY24 against an annual target of ₹1.8 trillion.

NLC India’s IPO plans align with these national objectives, aiming to leverage public market routes to bolster its green energy initiatives and contribute to the country's renewable energy goals.