Neyveli Lignite shares rally as CCEA clears 5% stake sale

NEW DELHI: Neyveli Lignite Ltd bounced back in afternoon trade on Friday and rallied over 9 per cent after hitting 52-week low of Rs 54.45 as the Cabinet cleared govt's 5 per cent stake sale in the Tamil Nadu-based miner.

The Cabinet Committee on Economic Affairs ( CCEA) has cleared 5 per cent stake sale of Neyveli Lignite through an offer for sale, which would help garner around Rs 466 crore to the exchequer.

The stock slipped nearly 5 per cent in morning trade to hit its 52-week low of Rs 54.45, but rallied smartly in the second half of the trading day.

At 01:20 p.m.; the stock was trading pared some of the gains and was trading 3 per cent higher at Rs 59.50. It hit a low of Rs 54.45 and a high of Rs 62.90 in trade today.

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

Department of Disinvestment (DoD) had moved moved Cabinet seeking to sale over 7.8 crore shares, or 5 per cent, through an offer for sale (OFS) route 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.