In a big step towards realising India’s clean energy ambitions, Navratna company NLC India (NLCIL) is planning to launch IPO of its renewable energy subsidiary NLC India Renewables (NIRL) in FY 2026–27 and raise INR 4,000 crore to fund its aggressive green growth plans.
NLC India Renewables IPO Timeline
According to NLCIL Chairman and Managing Director Prasanna Kumar Motupalli, the company will file the Draft Red Herring Prospectus (DRHP) with SEBI in Q1 (April–June) of FY 2026–27. NLC India Renewables IPO is expected to hit the markets in Q2 (July–September) of the same fiscal year, subject to regulatory approvals.
By March 2026, the company will complete all legal and financial due diligence and be ready for listing.
Funding a Green Future
The IPO proceeds will be used to achieve NLCIL’s vision of scaling up its renewable energy capacity from 1.4 GW currently to 10 GW by 2030 and further to 32 GW by 2047. This is in line with India’s national low-carbon economy push.
To achieve this, NLC India has planned an investment of INR 50,000 to 60,000 crore to increase its renewable portfolio nearly seven times. The capital will be raised through a mix of internal equity and debt, with the equity portion largely from internal resources.
Government Support and Strategic Freedom
In a major policy support, the Cabinet Committee on Economic Affairs (CCEA) on 16 July 2025 gave NLCIL special exemption from existing investment norms for government companies. This allows NLCIL to invest up to INR 7,000 crore in NIRL without additional approvals.
Moreover, the company can now invest in renewable projects independently or through joint ventures – a freedom not available to government companies under current public sector investment guidelines.
Current Operational Profile
As of now, NLCIL has 7 renewable energy assets with a combined capacity of 2 GW, either operational or nearing commercial operation. The company’s total installed capacity across energy segments is 6 GW, of which 4.6 GW is thermal. Interestingly, NLC India was the first company in India to add 1 GW of renewable energy capacity.
NIRL IPO Significance
The NIRL IPO is not just a fundraise, but a strategic shift for NLCIL. It will:
- Give more autonomy and flexibility to execute renewable energy projects.
- Unleash value for investors by separating the high-growth green energy business.
- Support India’s carbon intensity reduction and sustainable energy adoption.
This is a big milestone in India’s IPO story, which has seen a lot of activity in the energy and infrastructure space in 2025.
Conclusion
With a substantial IPO, ambitious renewable targets, and strong policy backing, NLC India’s green arm, NIRL IPO, is poised to play a transformative role in India’s energy sector. The upcoming IPO in FY 2026–27 signals the government’s confidence in leveraging public markets to fund the country’s energy transition.
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