You are here: Home » Companies » News
Business Standard

Punjab govt to divest PSIDC stake in Punjab Alkalies

State-owned PSIDC has 44.26% stake in PACL with 90.90 lakh equity shares

Press Trust of India  |  Chandigarh 

The Punjab government has decided to sell state-owned Punjab State Industrial Development Corporation's (PSIDC) stake in Punjab Alkalies & Chemicals Limited (PACL), an official said.

"The decision has been taken to divest the stake of PSIDC in PACL and it is the intention of the (Punjab) government," PSIDC Managing Director Vikas Pratap said here today.

"Now the Directorate of Disinvestment will invite expression of interest from prospective buyers to divest the stake," he added.

State-owned PSIDC has 44.26% stake in PACL with 90.90 lakh equity shares.

The book value of equity share of PACL as on March 2012, is Rs 48.79 per share, he said. However, the value of the share at BSE was Rs 24.80 yesterday.

The Punjab government had in the past decided to divest the PSIDC sake in PACL but the stake sale could not place because of it not getting the "right price".

When EOI were invited by Punjab government in 2010, almost fourteen including Jai Parkash Associates, Nirma, Grasim Industries, Nectar Lifesciences had evinced interest in buying the stake of PSIDC in PACL.

"The (earlier) stake sale could not go through as bidders were not ready to pay the right price," PACL Managing Director J S Kahlon said.

PACL is engaged in the manufacturing of caustic soda, liquid chlorine, hydrogen and hydrochloric acid with capacity of 300 tonne per day. The product produced by the company is used in paper industry, vegetable oil, aluminium and textile sectors.

PACL recorded net sales of Rs 69.93 crore as on June 30, 2012 with a net profit of Rs 1.33 crore.

The company posted total sale of Rs 236 crore as on March 31, 2012.

Besides PSIDC, other stakeholders in PACL are public, corporate bodies, mutual funds and banks with a percentage stake of 55.74%.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, September 22 2012. 18:12 IST