NLC India Limited announced on Monday, January 12, that its board of directors has granted in-principle approval for the listing of NLC India Renewables Limited (NIRL), its wholly-owned subsidiary. The listing will involve dilution of equity stake up to 25% in one or more tranches through a public offer, subject to requisite regulatory approvals.

Board Decisions and Approvals

The board's key decisions encompass both the renewable subsidiary's public listing and shareholder returns. The in-principle approval for NIRL's listing will be communicated to the Ministry of Coal for onward submission to the Department of Investment and Public Asset Management (DIPAM).

Dividend Declaration and Investment Plans

The board declared an interim dividend of 36%, amounting to ₹3.60 per equity share of face value ₹10 each, for the financial year 2025-26. January 16 has been fixed as the record date for determining members entitled to receive the interim dividend, which will be paid to eligible shareholders as per statutory timelines.

Further, the board granted in-principle approval to invest up to ₹66.60 crores in NIRL, in one or more tranches, by way of subscription to equity shares at face value. The proposed investment, subject to necessary statutory approvals, is intended to fund green energy projects to be executed through joint venture companies.

Recent Financial Performance

NLC India Ltd reported mixed financial results for the quarter ended September 2025. The Chennai-based lignite coal miner experienced a 27.10% year-on-year decline in consolidated net profit, which fell to ₹665.00 crores from ₹912.00 crores in the corresponding quarter last year.

Despite the profit decline, revenue from operations rose 14.00% to ₹4,178.40 crores from ₹3,657.30 crores a year ago, supported by higher output and improved realisations. Operating performance was stronger, with earnings before interest, tax, depreciation, and amortisation (EBITDA) up 30.50% year-on-year to ₹1,400.00 crores from ₹1,073.00 crores.

Market Response

Shares of NLC India Ltd closed at ₹257.00, up ₹4.60 or 1.82%, on January 12, reflecting positive market sentiment towards the board's strategic decisions regarding the renewable subsidiary's listing and dividend declaration.

NLC India has announced an interim dividend of ₹3.60 per equity share for Financial Year 2025-26, according to an exchange filing released on Monday. The public sector company's board approved the dividend declaration, representing a 36% payout on the face value of paid-up equity shares.

Dividend Details and Timeline

The company's board has formally approved the "declaration of Interim Dividend of 36% (i.e. ₹3.60 per equity share) on the face value of paid-up equity shares of ₹10 each for the Financial Year 2025-26," as stated in the exchange filing.

Shareholder Eligibility and Important Dates

The record date to determine shareholder eligibility has been set as January 16, 2026. Under India's T+1 settlement cycle, investors must purchase shares before the ex-dividend date to qualify for the dividend payment. Due to the stock market closure on January 15, 2026, for Mumbai civic polls, the ex-dividend date has been moved to January 14, 2026.

The company has confirmed that payment will be made to eligible shareholders according to statutory timelines, though the specific payout date has not yet been announced. "It is further informed that the said interim dividend will be paid to eligible shareholders as per the statutory timelines," the filing stated.

Corporate Development

In additional corporate news, NLC India informed exchanges that its wholly owned subsidiary, NLC India Renewables Ltd., has received in-principle approval for listing. This development represents a significant milestone for the company's renewable energy expansion strategy.

Stock Performance

NLC India's stock closed 1.50% higher at ₹255.90 per share on the NSE on Monday, outperforming the broader market. The Nifty index advanced 0.42% during the same session. The stock reached an intraday high of 2.58% during trading and has gained 6.59% over the past 12 months, demonstrating steady performance in the public sector space.