Neyveli Lignite Corporation advanced 2.3% to Rs 55.60 at 10:38 IST on BSE after the government set price band for paring stake at premium to ruling market price.
The announcement was made after trading hours on Wednesday, 31 July 2013.
Meanwhile, the S&P BSE Sensex was up 150.49 points, or 0.78%, to 19,496.19
On BSE, 16,089 shares were traded in the counter as against an average daily volume of 36,926 shares in the past one quarter.
The stock hit a high of Rs 58.20 and a low of Rs 55.30 so far during the day. The stock had hit a 52-week high of Rs 90.65 on 8 August 2012. The stock had hit a 52-week low of Rs 52.20 on 25 June 2013.
The stock had underperformed the market over the past one month till 31 July 2013, falling 3.72% compared with the Sensex's 0.26% fall. The scrip had also underperformed the market in past one quarter, sliding 24.88% as against Sensex's 0.81% decline.
The mid-cap company has an equity capital of Rs 1677.71 crore. Face value per share is Rs 10.
Neyveli Lignite Corporation (NLC) said that the Government of India (GoI) has fixed price band of Rs 58 to Rs 60 per share with respect to the institutional placement programme (IPP) of equity shares of the company to Qualified Institutional Buyers (QIB) by way of an offer for sale (OFS) by Government of India. The price band of Rs 58 to Rs 60 per share represents a premium of 6.72% to 10.4% from NLC's closing price of Rs 54.35 on Wednesday, 31 July 2013.
The IPP transaction will be completed in one tranche tomorrow, 2 August 2013. The divestment in NLC will be conducted through an institutional placement programme in which Tamil Nadu-based state entities would be given preference. Earlier this month, the market regulator Securities & Exchange Board of India (Sebi) had given the go-ahead to the disinvestment department's proposal to give preference in the share allotment to PSUs located in Tamil Nadu as Neyveli's generating units are located in Tamil Nadu.
NLC unveils Q1 results on 9 August 2013. The company'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.
Tamil Nadu-based NLC's principal activities are exploration of lignite mines and power generation.
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