Nalco stake sale commences on bourses, scrip tanks 8%
Shares of Nalco plunged over 8 per cent on the BSE in the early trade today as the government's up to 10 per cent stake sale of the PSU firm commenced on the bourses.
The floor or the minimum offer price for Nalco's share sale has been set at Rs 40 apiece, which was a 10 per cent discount to yesterday's close of Rs 44.65.
On the BSE, Nalco scrip hit a low of Rs 44.50, down 8.36 per cent over previous close, soon after the start of market hours. It continued to trade in the range of Rs 40.55-41.90 in the early hours, higher than the base price.
At the floor price of Rs 40, a 10 per cent stake sale in Nalco could garner around Rs 1,031 crore to the exchequer.
The Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, had on Wednesday cleared stake sale of 25.77 crore shares, or up to 10 per cent, in Nalco through the Offer For Sale (OFS).
The government is selling 5 per cent stake, with an option to retain another 5 per cent of the over-subscription.
The number of shares on offer is lower than what the Cabinet Committee on Economic Affairs (CCEA) had approved for in September last year. The CCEA had cleared a 12.5 per cent stake sale in the Navratna PSU.
The Department of Disinvestment (DoD) has held roadshows in Singapore, Hong Kong, Japan, the US and the UK last month for
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