SBI caps among 3 to manage NLC stake sale

The Department of Divestment has selected SBI Caps, Credit Suisse and ICICI Securities as bankers to manage the government’s stake sale in Tamil Nadu-based Neyveli Lignite Corporation (NLC). According to sources familiar with the development, all the three entities quoted the lowest price of `1.

IDBI Capital, Edelweiss Capital IDFC and Capital were the other three investment banks that had submitted bids.

While IDBI Capital too had quoted a bid of `1, Edelweiss Capital and IDFC Capital had put in bids of `3.75 crore and `60 lakh respectively.

In PSUs’ divestment, the banks quoting the lowest bids are given the mandate. The government has decided to disinvest 5% paid-up equity capital of the company through Offer for Sale (OFS) of shares by promoters through the stock exchanges. Currently, the government holds 93.56% of the paid-up equity capital of the company and balance is held by the public.