Neyveli up 5% on Sebi nod to TN PSUs to buy co stake

Moneycontrol Bureau

Neyveli Lignite (NLC) shares are up around 5 percent to Rs 62.70 after market regulator Securities and Exchange Board of India (Sebi) gave a go-ahead to a proposal, which would allow Tamil Nadu government-run companies to buy 3.56 percent stake in the government-owned company.

The Centre currently 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.

Read This:NLC disinvestment: PM asks Jaya to send officer for talks

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.