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Finmin to mines min: Consider 10% stake sale in Nalco

Finmin to mines min: Consider 10% stake sale in Nalco
PTI
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First Published: Mon, Apr 19 2010. 06 49 PM IST
Updated: Mon, Apr 19 2010. 06 49 PM IST
New Delhi: The finance ministry has asked its mines counterparts to consider 10% equity dilution in state-owned aluminium producer Nalco, Parliament was informed on Tuesday.
“The ministry of finance (department of disinvestment) had made a reference to ministry of mines in March 2010 to consider disinvestment of 10% equity out of the remaining 87.15% of total paid up capital held by the government in Nalco,” mines minister B K Handique said in a written statement to the Rajya Sabha.
However, the ministry of mines — the administrative ministry of the PSU — maintained that a decision in this regard is yet to be taken.
“As on date, no decision has been taken in this regard,” he added. At present, nearly 13% of the company has already been divested.
The Nalco counter today closed at Rs398.40, down 1.70% on the Bombay Stock Exchange.
If the government divests its 1%per cent stake in Nalco, at current share price, around Rs2,237 crore can be raised. However, the final amount will depend on the issue price of the FPO.
Nalco may not raise any fresh equity along with the proposed stake sale, its CMD A K Srivastava had recently said.
The ministry of mines is currently considering a further Public Offer (FPO) of its ailing PSU Hindustan Copper Ltd, to raise an estimated about Rs4,500 crore for each - the miner and itself.
The Centre is likely to go ahead with divestment in 12-15 public sector units, including SAIL, Coal India, Hindustan Copper, SJVNL and EIL among others in the current fiscal to raise Rs 40,000 crore.
The sell-off roadmap is being prepared by the department of disinvestment and is likely to be finalised by the end of the month.
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First Published: Mon, Apr 19 2010. 06 49 PM IST
More Topics: Nalco | Disinvestment | Iron Ore | SAIL | Coal India |