CHENNAI: The Securities and Exchange Board of India (Sebi) on Monday gave the go-ahead for Tamil Nadu to buy the Centre's 3.56% stake in power generating company Neyveli Lignite CorporationBSE 2.40 %
(NLC), paving the way for a rare divestment transaction between two
governments. Five of Tamil Nadu's public sector undertakings will be
shelling out close to Rs 500 crore to buy the stake.
Almost immediately, workers who have been striking against the Central Government's stake sale decision for 13 days called off their agitation. They plan to return to work from Monday night itself. Tamil Nadu threw its hat in the ring when the Centre's divestment plan saw vociferous protests from the state's political parties and workers.
The Centre needed to divest to comply with Sebi rules that require a listed PSU had to keep a minimum 10% public float. Neyveli Lignite only had 6.44%, with the Centre holding 93% stake.
Accordingly, on Monday, Jayalalithaa said in a statement that the Tamil Nadu Industrial Development Corporation, State Industries Promotion Corporation of Tamil Nadu Limited and other state units will buy the shareholding from the central government.
Almost immediately, workers who have been striking against the Central Government's stake sale decision for 13 days called off their agitation. They plan to return to work from Monday night itself. Tamil Nadu threw its hat in the ring when the Centre's divestment plan saw vociferous protests from the state's political parties and workers.
The Centre needed to divest to comply with Sebi rules that require a listed PSU had to keep a minimum 10% public float. Neyveli Lignite only had 6.44%, with the Centre holding 93% stake.
Accordingly, on Monday, Jayalalithaa said in a statement that the Tamil Nadu Industrial Development Corporation, State Industries Promotion Corporation of Tamil Nadu Limited and other state units will buy the shareholding from the central government.
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