Neyveli Lignite shares hit 52-week low on stake sale talks

NEW DELHI: Neyveli Lignite Ltd slipped nearly 5 per cent in morning trade on Friday to hit its 52-week low of Rs 55, ahead of the Cabinet meet to decide on government's stake sale.

The Cabinet is expected to take up the proposal later today to sell government's 5 per cent stake in Neyveli Lignite, which would help garner around Rs 450 crore to the exchequer.

At 09:25 a.m.; Neyveli Lignite was trading 3.8 per cent lower at Rs 55.50. It hit a 52-week low of Rs 55 and a high of Rs 56.55 in trade today.

The Cabinet Committee on Economic Affairs ( CCEA) had earlier this month deferred a decision on the stake sale.

The Department of Disinvestment (DoD) has again moved the proposal for sale of over 7.8 crore shares, or 5 per cent, through an offer for sale (OFS) in the Tamil Nadu-based miner.

SEBI has set a deadline of August 2013 for all listed central public sector units to have a minimum 10 per cent public shareholding.