See floor price for Neyveli Lignite at Rs 54-55: Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "I don't think that the prices of Neyveli Lignite are likely to fall further because if we take the market cap of close to sub Rs 10,000 crore, the government mandatorily has to go for 3.5 percent dilution to bring it down to 90 percent. So, instead of doing 3.5 percent they are going for 5 percent and I don’t think that, that will really be such a bad thing."

He further added, "Even the government won't be aggressive in setting a very low floor price. In fact I am expecting the floor price to get set may be at a level of Rs 54-55. I am not seeing that happening at the level of Rs 50 or so because the value doesn't seem going much below that." "So, this will just be a formality and I don’t think that these things will really be tough for the government because ultimately the insurance companies and PSU banks only have to come to subscribe this issue," Tulsian said. Also Read - CCEA okays new coal price model, Nevyeli Lignite divestment