New Delhi, June 21 (IBNS) The Cabinet Committee on Economic Affairs (CCEA) on Friday approved the disinvestment of 5 percent equity of Neyveli Lignite Corporation (NLC), 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.
The authorized capital of NLC is Rs. 2,000 crore of which the issued and subscribed equity capital as on March 31, 2012 is Rs.1,677.71 crore comprising 167.771 crore equity shares of face value of Rs.10 each.
After this disinvestment, Government of India`s holding in the company would come down to 88.56 percent.
NLC is a Central Public Sector Enterprise with Navratna status under the administrative control of the Ministry of Coal.
NLC was incorporated in the year 1956 under the Companies Act, 1956 with the objective of meeting the electricity demand of the southern states of India by excavating lignite for generation of power.
The company currently has lignite mines and power stations in Tamil Nadu and Rajasthan.