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Nalco nudges higher amid OFS by Govt

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Company rose 1.25% to Rs 68.60 at 12:51 on as the government's two-day offer for sale for offloading a total of 10% stake in the company began yesterday, 19 April 2017.

Meanwhile, the S&P Sensex was up 87.38 points or 0.3% at 29,423.95.

On the BSE, 9.29 lakh shares were traded on the counter so far as against the average daily volumes of 3.96 lakh shares in the past one quarter. The stock had hit a high of Rs 69.75 and a low of Rs 66.80 so far during the day.

The stock had hit a 52-week high of Rs 79.85 on 7 March 2017 and a 52-week low of Rs 40.25 on 20 May 2016. It had underperformed the market over the past one month till 19 April 2017, sliding 8.14% compared with the Sensex's 1.05% fall. The scrip had also underperformed the market over the past one quarter, declining 4.64% as against the Sensex's 7.43% rise.

The large-cap company has equity capital of Rs 966.46 crore. Face value per share is Rs 5.

Company's (Nalco) promoter, the of India (GoI) is selling upto 9.66 crore equity shares of the company, representing 5% stake with an additional option to sell up to 5% stake in the company in two trading sessions via offer for sale (OFS). The OFS for non-retail investors completed yesterday, 19 April 2017 and for retail investors and non-retail investors who chose to carry forward their un-allotted bids, the OFS is taking place today, 20 April 2017. The two-day OFS is through a separate, designated window on the stock exchanges.

The GoI held 74.58% stake in Nalco as per the shareholding pattern as on 31 March 2017.

The floor price for the OFS was fixed at Rs 67 per share. Retail investors will be allocated offer shares at a discount of 5% to the cut off price.

On the second day of the bidding for OFS today, 20 April 2017, as at 12:45 IST, bids were received for 2.44 crore shares from the retail investors, representing a subscription of 68.61%. The OFS received good response from non-retail investors' category yesterday, 19 April 2017, with an oversubscription of 184.25%.

Shares of Nalco had tumbled 7.76% to settle at Rs 67.75 yesterday, 19 April 2017.

Nalco's net profit declined 2.7% to Rs 143.92 crore on 13.9% growth in net sales to Rs 1963.81 crore in Q3 December 2016 over Q3 December 2015.

State-run Nalco has integrated and diversified operations in mining, metal and power.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 20 2017. 12:52 IST