Paving the way of disinvestment of Neyveli Lignite Corp, market regulator Sebi has permitted Tamil Nadu state entities to buy shares on preferential basis during the proposed government's 3.56 per cent stake sale.
Sebi in a communication to the Disinvestment Department has said other states in which Neyveli's generating units are located should also be given preference in allotment of shares.
"It has been decided...to treat QIBs belonging to government of Tamil Nadu as separate QIBs...for the purpose of allotment in IPP," Sebi's letter said. Earlier this week, the Empowered Group of Ministers (EGoM) cleared the disinvestment of 3.56 per cent stake in Neyveli Lignite through an IPP
The DoD had written to Sebi after the EGoM meeting seeking preference for Tamil Nadu state PSUs in the IPP mode. Government currently holds 93.56 per cent stake in Neyveli Lignite Corp (NLC).
Shares of NLC had closed on Friday at Rs 59.75 on the BSE, down 0.25 per cent over previous close on BSE.
Published 20 July 2013, 16:51 IST