Why This LIC-Backed Midcap Stock Is Surging 6% Today

Shares of NLC India (Neyveli Lignite Corporation of India) surged up over 6% to hit an intraday high of ₹136.30 on Friday morning.

What Happened: The company on Thursday evening announced that it had entered into a power purchase agreement (PPA) with Grid Corporation of Odisha Limited (GRIDCO). The company already had a 400-megawatt (MW) agreement with the company but has now expanded it to another 400 MW taking the total to 800 MW.

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The agreement is for 400MW in Stage 1 and 400 MW in Stage 2 of NLCIL’s proposed Neyveli Talabira Super Critical Thermal Power Station (NTTPP) in Odisha. With this agreement, NLC India has tied up its full capacity of 2400 MW of Neyveli Talabira Super Critical Thermal Power Station Stage-1.

The state-owned company has already signed a similar agreement in the past with Tamil Nadu, Kerala and Pondicherry for 1,500 MW, 400 MW, and 100 MW power supply respectively from Neyveli Talabira Super Critical Thermal Power station Stage-I.

Price Action: NLC India’s share price was up 3.86% to trade at ₹133.05 shortly after market open on Friday. LIC owns 1.51% stake in the company

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