Cabinet Committee Approved Disinvestment of 5 Percent Paid Up Equity in NLC
The Cabinet Committee on Economic Affairs on 21 June 2013 approved disinvestment of 5 percent equity of Neyveli Lignite Corporation (NLC).
The Cabinet Committee on Economic Affairs on 21 June 2013 approved disinvestment of 5 percent equity of Neyveli Lignite Corporation (NLC). This 5 percent equity was approved out of its holding of 93.56 percent through an Offer for Sale (OFS) in the domestic market according to Securities and Exchange Board of India (SEBI) rules and regulations.
NLC is authorised the capital of 2000 crore Rupees, out of which the subscribed as well as issued equity capital was 1677.71 crore Rupees as on 31 March 2013. This comprised of 167.771 crore equity shares of face value of 10 Rupees each. After this disinvestment, the holding of the Government of India in NLC would drop down to 88.56 percent.
About Neyveli Lignite Corporation (NLC)
• Neyveli Lignite Corporation (NLC) is the Central Public Sector Enterprise.
• It has Navratna status under the administrative control of the Ministry of Coal.
• It was incorporated in the year 1956 under the Companies Act, 1956.
• The objective of the company is meeting the electricity demand of the southern states of India by excavating lignite for generation of power.
• At present, NLC has the lignite mines and power stations in Tamil Nadu and Rajasthan.