Giving a steep discount of nearly 10 percent, the government today fixed Rs 40 a share as the floor price for up to 10 per cent stake sale in aluminium major Nalco, which would fetch a minimum of Rs 1,031 crore.
Giving a steep discount of nearly 10 percent, the government today fixed Rs 40 a share as the floor price for up to 10 per cent stake sale in aluminium major Nalco , which would fetch a minimum of Rs 1,031 crore.
The offer for sale is scheduled to be held tomorrow through a special window on BSE and NSE.
"With reference to the earlier announcement dated March 13, 2013 regarding Offer for Sale of shares by promoter, the President of India,... has now informed BSE that the floor price for the sale... shall be... Rs 40 per equity share,"
Nalco said in a filing to the BSE.
Though the announcement of the base price for the share sale was made today, the decision on it was taken yesterday itself by an Empowered Group of Ministers, headed by Finance Minister P Chidambaram.
The base price of Rs 40 a share for National Aluminium Company of India (Nalco) is at a discount of 9.61 percent over today's closing price of company's shares at Rs 44.25 on the BSE.
Nalco shares fell nearly 5 per cent on the bourses today amid the buzz that government is likely to fix the base price at a discount of 10 per cent or above.
On BSE, company shares fell 4.43 per cent to close at Rs 44.25 apiece, while on the NSE, the scrip closed at Rs 44, down 4.56 per cent.
Yesterday, the company had said that the government would offload more than 12.89 crore shares, amounting to about 5 percent stake in the company.
Besides, the government would have an "option to sell an additional 12,88,61,925 equity shares of the face value of Rs 5 each of the company... collectively aggregating to approximately 10 per cent of the total paid up equity share capital of the company," ," it had said further.
The government currently holds 87.15 per cent stake in Nalco.
The sale through the auction route would be held tomorrow between 9:15 am and 3:30 pm.
The company had held road shows, to woo investors, last month at Singapore, Hong Kong, Japan, the US and the UK.
Nalco posted a more than two-fold jump in its October-December quarter net profit to Rs 118.94 crore, on the back of improved sales. The company had a profit of Rs 51.22 crore in the same period last fiscal.
Enam Securities, SBI Caps and IDFC are merchant bankers for the Nalco disinvestment.
The issue, if subscribed fully, would help the government in achieving the revised target of Rs 24,000 crore from divesting stakes in the public sector firms.
So far, the government has mopped up nearly Rs 22,000 crore and is banking on garnering over Rs 3,000 crore from the share sale of steel major SAIL to meet the revised estimates.
The SAIL share sale is scheduled to be held next week.
NALCO stock price
On December 22, 2014, National Aluminium Company closed at Rs 53.80, up Rs 1.20, or 2.28 percent. The 52-week high of the share was Rs 68.80 and the 52-week low was Rs 31.80.
The company's trailing 12-month (TTM) EPS was at Rs 3.55 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 15.15. The latest book value of the company is Rs 47.04 per share. At current value, the price-to-book value of the company is 1.14.
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