The government will divest 10 per cent of its stake in National Aluminium (Nalco) at a discount of nearly 10 per cent to the current market price to attract investors at a time when the outlook for the metal industry is quite bearish.
According to a stock exchange announcement,the government,which holds a 87.15 per cent stake,has fixed a floor price of Rs 40 per share to divest 12.89 crore shares with an option to sell an additional 12.89 crore equity shares,which collectively represent nearly 10 per cent of the total equity capital of the company.
At the floor price of Rs 40,the government will be able to raise a minimum of Rs 1,031 crore from the offer for sale (OFS) on Friday. Shares of Nalco lost 4.43 per cent on Thursday to close at Rs 44.25. Incidentally,the counter has been trading in a narrow range in the last few months.
Market players say that it would be interesting to see the response of institutional investors to the stake sale as the feedback was quite subdued during the roadshows conducted recently in Hong Kong,the UK,the US and Canada. Enam Securities,SBI Caps and IDFC are merchant bankers for the Nalco disinvestment. Analysts also note that the market response to Nalco stake sale in particular may be difficult as coal is the key operational trouble affecting its performance. FE