Nalco officers' body vows against disinvestment

The association today staged dharana at the site of Nalco's aluminium smelting facility at Angul

The officers’ association of National Aluminium Company (Nalco) vowed not to allow disinvestment of the aluminium major even as the firm's share traded lower by 3.8 per cent at Rs 44.80 on the Bombay Stock Exchange (BSE) on the eve of the government's stake sale plan on Friday.

“In no circumstance, we will allow disinvestment of Nalco. The government is trying to convey a wrong message to the public that stake sale of the company will be beneficial,” said B K Parida, general secretary, Nalco officers’ association.

The association on Thursday staged a dharana at the site of Nalco’s aluminium smelting facility at Angul, protesting the government’s move for disinvestment.

A Nalco spokesperson, however, denied knowledge of any agitation.

"The promoter proposes to sell 128.86 million equity shares of the face value of Rs 5 each with an option to sell an additional 128.86 million, collectively aggregating to approximately 10% of the total paid up equity share capital of the company on March 15, 2013,” the state-owned aluminium producer said in a regulatory filing.

The government currently holds 87.15% stake in Nalco. In November last year, Nalco's disinvestment was deferred due to its below par performance in the July-September quarter. Nalco's disinvestment was approved by the Cabinet Committee on Economic Affairs (CCEA) in September last year.