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The much-debated sale of the Government’s 3.56 per cent stake in Neyveli Lignite Corporation has been subscribed fully. As against the offer for 5.97 crore shares, the stake sale (through the institutional placement) received bids for 6.12 crore shares.
The Tamil Nadu Government fought with the Centre to sell the entire stake to itself. The price band was fixed at Rs 58-60 a share.
According to the proposal, the Centre plans to offload the stake to the State Government in a single tranche.
Recently, The Hindu quoting State Government sources, said five public sector undertakings of Tamil Nadu will bid at the highest rate to ensure that no one else gets the stake. In the event of another entity making the same bid, preference will be for these PSUs.
At this price band, the expenditure for Tamil Nadu Government will be between Rs 346.26 crore and Rs 358.20 crore. The shares are expected to be allotted in a dematerialised form by August 8.
The NLC stock was ruling at Rs 55.
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