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Construction : Deals | August 2013 | Source : Construction Update

Govt to raise Rs 350 cr via stake sale in NLC

The Union government's 3.56 per cent stake sale of Neyveli Lignite Corporation (NLC) through the institutional placement route was scheduled to hit the markets on August 2 and is expected to fetch around Rs 350 crore to the exchequer. The government is selling 3.56 per cent stake or over 5.58 crore shares in NLC through an institutional placement programme (IPP) in which the Tamil Nadu based state entities would be given preference while allotment of shares.

The EGoM has decided on a price band for the NLC stake sale, Disinvestment Secretary Ravi Mathur said in Delhi after the meeting of the Empowered Group of Ministers. He said the price band would be communicated to the stock exchanges shortly.

Earlier this month, market regulator Sebi had given go-ahead to the disinvestment department's proposal to give preference in share allotment to those PSUs located in states in which Neyveli's generating units were located.

Tamil Nadu government has been insisting that it would buy the entire central government stake that is being divested in the state lignite mining and power producing company and had written to Prime Minister Manmohan Singh in this regard last month.

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