Nalco gets board nod to buy back shares of Rs 2,835 cr; govt stake to fall
The buyback will happen 'at a price of Rs 44 per equity share payable in cash
New Delhi: Aluminium maker Nalco said its board has approved a proposal to buy back 64.43 crore shares worth close to Rs 2,835 crore, a move that will lead to liquidation of government's stake in the firm.
In a regulatory filing, the company said its board approved buyback of not exceeding 64,43,09,628 equity shares of the company (representing 25 per cent of the total number of equity shares in the paid-up share capital of the company).
The buyback will happen "at a price of Rs 44 per equity share payable in cash for an aggregate consideration not exceeding Rs 2,834.96 crore," the filing said.
This should not exceed 25 per cent of aggregate of the fully paid-up share capital and free reserves as per audited accounts of the company for the fiscal ended March 31, 2015.
The Navratna firm will take the approval of shareholders by way of a special resolution through Postal Ballot and all other applicable statutory approvals, it added.
"The Board of Directors noted the intention of the Promoter (government) of the company to participate in the proposed Buyback," the filing said.
Earlier, sources had said that government was looking to raise around Rs 3,250 crore by selling 25 percent stake to Nalco after its stake sale plans got derailed due to volatile markets.
Government, which holds 80.93 percent stake in Nalco, was planning to divest 10 percent shareholding to raise about Rs 1,300 crore.
Earlier this month, Mines Secretary Balvinder Kumar said that Finance Ministry asked it to allow Nalco to buy-back 25 percent of governments' stake in the firm.
In anticipation of the buyback announcement, shares of the firm today rose by 1.65 percent to settle at Rs 43.05 apiece on the BSE.
By closing bell, Sensex witnessed a massive surge of 872.73 points or 1.65 percent to close at 53,823.36. Meanwhile, Nifty closed at 16,130.75 after jumping up by 245.60 points or 1.55 percent
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