Govt mulls a 10% stake dilution in Neyveli Lignite

Govt mulls a 10% stake dilution in Neyveli Lignite

New Delhi: The government is likely to dilute up to 10% of its stake in Neyveli Lignite Corporation in the next financial year, a company official said on Wednesday.

“In principal, it (stake dilution) has been agreed by the government. It is in the process...Sometime in the next financial year (this sale could be done)," Neyveli Lignite chairman and managing director A R Ansari told reporters on the sidelines of the Public sector summit.

He further said the government stake dilution might go up to 10%, adding that the company is unlikely to issue fresh equity to raise capital.

“There is no capital requirement. We have a cash reserve of 6,000 crore," Ansari added.

At present the government holds a 93.56% stake in the company.

The government, which hopes to raise 40,000 crore through its disinvestment programme this fiscal, has already mopped up over 20,000 crore through the sale of stakes in PSUs Satluj Jal Vidyut Nigam, Engineers India Ltd, Coal India Ltd and PowerGrid Corporation.

Shares of Neyveli were trading up by 2.47% at 132.90 on the Bombay Stock Exchange.