Nalco board to discuss Rs 3,250 cr share buy-back next week

Nalco on May 20 said its board will meet on May 25 to discuss buy-back of the government's 25 percent stake in the aluminium maker.

The Centre is looking to raise around Rs 3,250 crore by selling 25 percent stake to Nalco after its plans to sell 10 percent stake in the firm to raise about Rs 1,300 crore got derailed due to volatile markets, sources said.

"A meeting of the Board of Directors of the company will be held on May 25, 2016, inter alia, to consider the proposal for alteration In Articles of Association of the company and buyback of the fully paid-up equity shares of the company," the state-run firm said in a regulatory filing.

Earlier this month, Mines Secretary Balvinder Kumar had told PTI that Finance Ministry asked it to allow Nalco to buy-back 25 percent of governments stake in the Navratna company.

Last month, Nalco declared an interim dividend of 25 percent amounting to Rs 322.16 crore for 2015-16 and presented a cheque for Rs 260.72 crore to Mines Minister Narendra Singh Tomar as interim dividend on 80.93 percent stake held by the Government of India.