NLC India shares jump 12% as OFS opens for retail investors

Market participants are recommending caution to retail investors who are mulling putting money in the government's share sale of NLC India, one of the top stock performers in the past year.

Concerns over rich valuations of most state-owned companies may keep share gains under check in the near term, they said. Investors could, however, consider purchases of NLC shares on further declines.

The issue had opened for non-retail Investors on Thursday, March 7.

In a separate development, the PSU company informed the exchanges about signing an MOU with the Rajasthan Government for the formation of a joint venture for adding thermal and renewable capacity. Under the JV, a 125 MW Lignite Based Power Plant and 1000 MW Solar Power Plant will be set up in the state.

The MoU between NLC India Limited and RVUNL entails an investment of more than Rs 7,000 crore, the exchange filing said. Additionally, a LoI for the set-up of an 810 MW solar power plant has already been issued. This is in line with the corporate plan of NLC India to become a power major of 17 GW capacity with more than 6 GW renewable capacity by 2030, the filing said.

NLC India has delivered multibagger returns of 200% over the past 12 months, significantly outperforming the Nifty which has given over 31% returns during the said period.

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