New Delhi: The Union Cabinet on Friday approved offloading of 5 per cent government stake sale in Neyveli Lignite Corporation (NLC),which would help raise about Rs 600 crore.
The Cabinet Committee on Economic Affairs (CCEA),cleared the stake sale through the offer for sale route. The governments stake which is currently 93.56 per cent stake in the Tamil Nadu based lignite company,would come down to 88.56 percent once the disinvestment is completed.
Market regulator Sebi has set a deadline of August 2013 for all listed central public sector units to have a minimum 10 per cent public shareholding. Tamil Nadu chief minister J Jayalalithaa had suggested delisting of Neyveli Lignite or amending the Securities Contracts (Regulation) Rules,1957,to make a special exemption for the company.
NLC shares jump 9%
Mumbai: After the Cabinet cleared the governments 5 per cent stake sale in Neyveli Lignite,shares of the company climbed 9 per cent to Rs 62.90 on the BSE. At the NSE,the stock zoomed up by 9.28 per cent to Rs 59.80.