NALCO Buyback will open for subscription on 25 February 2021. the company aims for an issue size of ₹749.10 Crores through this Buyback Issue.
National Aluminium Company Limited
Incorporated in 1981, NALCO is a Navratna CPSE under the Ministry of Mines, Government of India. NALCO is a Schedule A‘ CPSE having integrated and diversified operations in mining, metal, and power. The main functions of the company include Mining and transportation of Bauxite, Refining of Alumina, production of Aluminium metal, Manufacturing of various Aluminium products, generation of Thermal and Wind Power, and marketing of Alumina, Aluminium and allied products. Globally, NALCO has achieved the distinction of being the lowest cost producer of Bauxite and Alumina in the world for the year 2019, as per the latest report of Wood Mackenzie.
Objectives of the Issue
- Improve return on equity, by reduction in the equity base.
- Optimize the capital structure.
NALCO Buyback Issue Timetable
| Offer Opens On | Feb 25, 2021 |
| Offer Closes On | Mar 10, 2021 |
| Record Date | Feb 8, 2021 |
| Last Date for receipt of Tender Forms | Mar 12, 2021 |
| Finalization of Buyback Acceptance | Mar 16, 2021 |
| Last Date for settlement of bids | Mar 17, 2021 |
| Last Date for Extinguishment of Shares | Mar 19, 2021 |
NALCO Buyback Detail
| Security Name | National Aluminium Company Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 13.03 Crores |
| Issue Size (Amount) | ₹749.10 Crores |
| Buyback Price | ₹58 per share |
| Face Value | ₹5 per share |
| Listing At | BSE, NSE |
Buyback Ratio
| Category | Entitlement Ratio of Buyback |
|---|---|
| Reserved Category for Small Shareholders | 23 Equity Shares out of every 195 Equity Shares held on the Record Date. |
| General Category for all other Eligible Shareholders | 37 Equity Shares out of every 568 Equity Shares held on the Record Date. |
Company Financials
| Particulars | For the year/period ended (Rs in Crores) | ||
|---|---|---|---|
| 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | |
| Total Income | 8,742.42 | 11,826.48 | 9,917.74 |
| Profit After Tax | 136.23 | 1,733.69 | 1,342.19 |
| Net Worth | 9,986.50 | 10,484.94 | 10,503.95 |
Stock Market Data (for preceding 3 months)
BSE
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Dec-2020 | 45 | 37.4 | 42.04 |
| Nov-2020 | 40.2 | 29.95 | 34.63 |
| Oct-2020 | 33.3 | 29.15 | 30.8 |
NSE
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Month | High Price | Low Price | Average Price |
| Dec-2020 | 45 | 37.35 | 42.06 |
| Nov-2020 | 40.2 | 29.95 | 34.63 |
| Oct-2020 | 33.3 | 29.1 | 30.78 |
NALCO Buyback Registrar
KFintech Private Limited
Selenium Building, Tower-B, Plot No 31 & 32,
Financial District, Nanakramguda, Serilingampally,
Rangareddi, Telangana India – 500 032.
Phone: 1-800-3454001
Email: nalco.buyback2021@kfintech.com
Website: https://karisma.kfintech.com/
Company Contact Information
National Aluminium Company Limited
Nalco Bhawan, Plot No. P/1, Nayapalli,
Bhubaneswar-751013
Phone: +91 (0674) 2300 677
Email: company_secretary@nalcoindia.co.in
Website: http://www.nalcoindia.com
Final Thoughts
A buyback occurs when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors. subscribing for a buyback issue is purely a personal choice. make a detailed study before you make a decision on buyback issue subscription.
Happy Investing