NALCO share sale deferred to 7 January 2013

NALCO share sale deferred to 7 January 2013
New Delhi:

The proposed share sale of NALCO has been deferred until 7 January 2013 as the government wants to boost the financial strength of the state-owned aluminium manufacturer before a sale.

India’s Divestment Secretary Halim Khan said the company’s second quarter results did not reflect its intrinsic value, while Praful Patel, Minister for Heavy Industries, added that the divestment will go through only after the company has declared its results for the third (October-December) quarter of this fiscal year.
The government is hopeful of selling stakes in three state-owned companies -- Oil India, NMDC and Hindustan Copper -- in this quarter. It expects to raise Rs 12,000 crores from this sale. At the current market price, the Nalco stake sale could raise $267 million (Rs 1,449 crore).

Beginning the disinvestment process this year, the government is likely to sell a stake in Hindustan Copper through the auction route on November 21.

"November 21 is the tentative date," Hindustan Copper Ltd (HCL) chairman K D Diwan told reporters earlier. He, however, declined to comment further on the disinvestment programme.

On September 14, the government approved the disinvestment of a 9.59 per cent stake in the company through an offer for sale of shares through stock exchanges.

Post disinvestment, the government's shareholding will come down to 90 per cent in the company, which had a paid-up capital of Rs. 462.61 crore in March 2012.

In 2011-12, the leading domestic copper producer reported its best ever net profit at Rs. 323.44 crore, while its net sales stood at Rs. 1,489.61 crore.

The government, which is aiming to garner Rs. 30,000 crores from divesting its shares in public sector undertakings in the current fiscal year, has not launched a single share sale so far.

Last month, it indefinitely deferred the initial public offer of Rashtriya Ispat Nigam due to differences with the merchant bankers over the price band of the issue.

(With inputs from PTI)