Neyveli Lignite jumps on buzz CCEA OKs stake sale

Meanwhile, the S&P BSE Sensex was up 70.53 points, or 0.38%, to 18,789.82.

On BSE, 5.84 lakh shares were traded in the counter as against an average daily volume of 17,597 shares in the past one quarter.

Trading was volatile in the Neyveli Lignite Corporation (NLC) counter. The stock fell 5.63% to hit a 52-week low of Rs 54.45 in early trade. However, after the news report of Cabinet Committee on Economic Affairs (CCEA) approval hit the market, the stock spurted 9.01% to hit the day's high of Rs 62.90.

The stock hit a low of Rs 54.45 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs 62.90 so far during the day. The stock had hit a 52-week high of Rs 90.65 on 8 August 2012.

The stock had underperformed the market over the past one month till 20 June 2013, sliding 16.32% compared with the Sensex's 7.44% fall. The scrip had also underperformed the market in past one quarter, sliding 13.75% as against Sensex's 0.87% fall.

The mid-cap company has an equity capital of Rs 1677.71 crore. Face value per share is Rs 10.

According to reports, the CCEA has cleared the proposal to sell the government's 5% stake in NLC through an offer for sale (OFS) of shares.

The Government of India (GoI) holds 93.56% stake in NLC (as per the shareholding pattern as on 31 March 2013).

Market regulator Securities & Exchange Board of India (Sebi) has set a deadline of August 2013 for all listed central public sector units to have a minimum 10% public shareholding.

The CCEA was to take up the issue of selling the government's 5% stake in NLC last month, but the decision was reportedly deferred due to strong protest from the Dravida Munnetra Kazhagam (DMK).

NLC's net profit rose 1.6% to Rs 614.79 crore on 9.5% growth in net sales to Rs 1653.35 crore in Q4 March 2013 over Q4 March 2012.

NLC's principal activities are exploration of lignite mines and power generation.

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