Govt to sell stake in STC, ITDC, Neyveli Lignite on Friday

New Delhi: The government will sell its stake in three companies-State Trading Corporation (STC), ITDC and Neyveli Lignite Corporation-on Friday to raise around Rs 380 crore.

"The EGoM cleared the floor price for stake sale in STC and ITDC through an OFS. The issue will hit markets tomorrow," disinvestment secretary Ravi Mathur told reporters in New Delhi.

 Govt to sell stake in STC, ITDC, Neyveli Lignite on Friday

Shedding shares. Andrew Middleton/Flickr

On Tuesday, the Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, had cleared the 3.56 percent stake sale in Neyveli Lignite Corporation (NLC) through an Institutional Placement Programme (IPP) at a price band of Rs 58-60 a share. The stake sale is expected to fetch Rs 350 crore to the exchequer.

Last month, the cabinet had cleared the proposal to sell 5 percent of government's stake in India Tourism Development Corporation (ITDC) and 1.02 percent in STC through the Offer For Sale (OFS) route.

The government expects the sale of 5 percent stake, or 42.88 crore shares, in ITDC to fetch Rs 23.58 crore.

Besides, it aims to garner about Rs 10 crore through disinvestment of 1.02 per cent, or 6.13 crore shares, in STC, sources said.

The government currently holds 92.11 percent stake in ITDC and 91.02 percent stake in STC.

"ITDC scrip is highly illiquid. So the EGoM has taken a view on the pricing of the disinvestment," Mathur said.

The stake sale would help the three companies meet the minimum 10 percent public holding norm of market regulator Securities and Exchange Board of India (Sebi).

The government is required to bring down its stake in these two companies to 90 percent by 8 August.

PTI

Updated Date: Dec 21, 2014 03:09:00 IST