Neyveli up after EGoM clears 3.56% stake sale via IPP
Currently, the government holds 93.56 percent stake in NLC. The stake sale is being proposed done to meet the minimum public holding norm. SEBI has set a deadline of August 8, 2013, for all listed central public sector units to have a minimum 10 per cent public shareholding.
July 18, 2013 / 12:24 IST
Moneycontrol Bureau
Neyveli Lignite shares rose around a percent to Rs 60.35 today after an Empowered Group of Ministers (EGoM) cleared disinvestment of 3.56 percent stake in the firm through institutional placement programme (IPP) on Wednesday. The issue is likely in the first week of August.The Department of Disinvestment (DoD) had originally planned to divest 5 percent of its stake in the Tamil Nadu-based mining company. The Cabinet had last month approved the same. Since the IPP mode is allowed only to meet the pubic holding norm minimum 10 percent, the department would now sell only 3.56 percent or over 5.58 crore shares.Read This:Centre, SEBI accept Jaya's NLC proposal; workers end stirThe DoD has written to Sebi seeking preference to Tamil Nadu state PSUs, he said, adding that the Department would now file the offer document with Sebi and after that the issue would hit the market.Currently, the government holds 93.56 percent stake in NLC. The stake sale is being proposed done to meet the minimum public holding norm. SEBI has set a deadline of August 8, 2013, for all listed central public sector units to have a minimum 10 per cent public shareholding.Earlier, the proposal for disinvestment of NLC's equity had not gone well with employees who believed in preserving the public sector character of the mining and power generation company. However, unions have also called off strike.The Cabinet had last month cleared sale of 7.8 crore shares, or 5 percent of government's stake, through an offer for sale in NLC to raise Rs 455 crore at current prices. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
