The first divestment of this financial year will see the government sell a 10 per cent stake in the National Aluminium Company (Nalco). The move will generate a revenue of around Rs.600 crore, with each share priced at Rs.67.
The government currently has a 74.58 per cent stake in Nalco. It will divest five per cent of this stake, with Nalco having the option to divest another five per cent. The government’s five per cent stake will see 9.67 crore shares up for sale.
The combined deal could generate over Rs.1,300 crore. While Nalco shares ended Tuesday at Rs.73.45, they opened at Rs.68.60 today, a drop of six per cent.
Retail investors will be eligible to purchase shares from Thursday, with today’s offer available only to non-retail investors.
Nalco, a Navrathna Central Public Sector Enterprise was set up in 1981, coming under the purview of the Ministry of Mines.
Arun Jaitley, the Finance Minister, had in his budget speech stated that the government aims to garner Rs.72,500 crore through divestment in the current financial year.
|Financial Year||Divestment target (Rs.) crore|
The government has failed to meet previous targets, generating around Rs.37,000 crore through divestment last year.
The divestment plan for the current financial year could see the government divest shares in the insurance sector, railways, banks, etc.