EGoM to decide price band for Nalco stake sale tomorrow

EGoM to decide price band for Nalco stake sale tomorrow
New Delhi:

The Empowered Group of Ministers on disinvestment tomorrow will decide on the price band for offloading 12.5 per cent government equity in aluminium major Nalco.

The stake sale in Nalco is expected to fetch the exchequer around Rs 1,500 crore.

"The Empowered Group of Ministers (EGoM) will meet to decide on the Nalco floor price tomorrow," a government official said.

The Cabinet Committee on Economic Affairs (CCEA) had in September approved disinvestment of 12.5 per cent government stake in the Navratna PSU. Following the stake sale, the Government would hold 75 per cent stake in the company.

Shares of Nalco closed at Rs 46.40 on the BSE, down 0.43 per cent over previous close.

The Department of Disinvestment (DoD) would opt for the Offer for Sale (OFS) or auction route for selling stake in Nalco.

Nalco would be the first PSU to hit the capital markets in the current fiscal. Last month the government had to postpone the public issue of Rashtriya Ispat Nigam Ltd (RINL) as the Steel Ministry felt that the issue price suggested by merchant bankers was less than the book value.

The government aims to raise Rs 30,000 crore by way of disinvestment in the current fiscal. But with seven months of the fiscal already over, it might find it difficult to meet the target.

Finance Minister P Chidambaram has exuded confidence that the Rs 30,000 crore target would be achieved. During the current fiscal the government is also planning to sale stake in Oil India, MMTC, Hindustan Copper, SAIL and NMDC.