Nalco rises after announcing details of share buyback

National Aluminium Company rose 0.63% to Rs 47.45 at 09:45 IST on BSE after the manager to the company's buyback offer made the public announcement for the buyback of equity shares.

The announcement was made after market hours yesterday, 25 August 2016.

Meanwhile, the S&P BSE Sensex was up 64.81 points or 0.23% at 27,900.72

On BSE, so far 5,764 shares were traded in the counter as against average daily volume of 1.93 lakh shares in the past one quarter. The stock hit a high of Rs 47.50 and a low of Rs 47.20 so far during the day. The stock had hit a 52-week high of Rs 51.40 on 13 July 2016. The stock had hit a 52-week low of Rs 28.85 on 27 August 2015. The stock had underperformed the market over the past 30 days till 25 August 2016, falling 1.46% compared with Sensex's 0.67% fall. The scrip had, however, outperformed the market in past one quarter, advancing 12.66% as against Sensex's 4.44% rise.

The large-cap company has equity capital of Rs 1288.62 crore. Face value per share is Rs 5.

National Aluminium Company (Nalco) proposes to buyback upto 64.43 crore equity shares at Rs 44 per share on proportionate basis through the tender offer route. The buyback offer aggregates to Rs 2834.96 crore. The buyback offer size represents 22.15% of the aggregate of the fully paid-up share capital and free reserves, as per the audited accounts of the company for the financial year ended 31 March 2015. The buyback offer opens on 30 August 2016 and closes on 14 September 2016. The promoter of the company viz. the Government of India (GoI) intends to participate in the buyback offer. As on 30 June 2016, GoI held 80.93% stake in Nalco. The company's board of directors had approved buyback on 25 May 2016.

Nalco's net profit declined 41.4% to Rs 207.94 crore on 3.3% growth in net sales to Rs 1836.86 crore in Q4 March 2016 over Q4 March 2015.

State-run Nalco has integrated and diversified operations in mining, metal and power. The Government of India (GoI) held 80.93% stake in the company (as per the shareholding pattern as on 30 June 2016).

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