Neyveli Lignite lights up
PSU Neyveli Lignite is doing pretty well on the bourses currently. It is amongst the top five gainers on the BSE, up over 2% at Rs.59.50, with an intra day high at Rs.60.55.
Contrary to the trend, where PSUs are in the red, this stock is up after SEBI gave its nod to the Tamil Nadu government’s proposal to buy 5% stake in Neyveli Lignite Ltd (NLC), provided the acquisition is done by a qualified state entity. SEBI has written to the Tamil Nadu Govt to send a concrete proposal and the list of state PSUs which could buy shares in NLC.
The Govt holds 93.56% stake and to meet SEBI’s deadline of 8th Aug for the 10% minimum public shareholding requirement, OFS had been cleared by the Cabinet to sell 5%. There was uproar at NLC, with laborers went on a strike, opposing the stake sale. The Tamil Nadu govt thus stepped in and offered to buy the 5% stake.