Government to sell Rs 1,400 crore NALCO stake on March 15

A panel of ministers has approved selling a 12.15 per cent stake in state-owned National Aluminium Co Ltd (NALCO) through a share auction on March 15, a finance ministry official said on Wednesday.

The minister, however, did not give details on the likely pricing for the sale.

Selling down its shareholding in state companies is central to the government's plan to cut its fiscal deficit.

The government has so far raised about $4 billion through divestment and hopes to touch its target of $5.1 billion by the end of March.

At the current price, NALCO stake is worth about $260 million (Rs 1,406.86 crore with respect to $1 = Rs 54.11).

On Wednesday, shares in the company closed 2 per cent higher at Rs 46.10, ahead of the announcement.

Copyright @ Thomson Reuters 2013