• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

NEW DELHI, Feb. 11

THE Union Government will soon launch the process of offering 30 per cent of its equity in National Aluminium Company Ltd (Nalco) through an issue of American depository receipts (ADR)/global depository receipts (GDR), despite a general downturn in the metal industry.

"We will go ahead with the decision taken by the Cabinet Committee on Disinvestment (CCD) last year to offload 30 per cent of the Government's equity in Nalco through an ADR/GDR issue," a top official with the Ministry of Disinvestment said on Monday.

The official said that there was no point in waiting for the metal industry to ride out the sluggishness that had been persisting over the past few months. "What is the guarantee that the industry will improve over the next two-three months... it may get even worse. So, why should we wait?" the official asked.

The Disinvestment Ministry was earlier thinking of deferring the ADR/GDR offering in Nalco due to the poor showing of the company's scrip on the stock exchanges.

The Union Government currently holds 87.15 per cent equity in Nalco and its shares are listed on the Bombay and National stock exchanges.

Nalco accounts for about a third of the primary aluminium produced in the country. It has a consistent track record of profit generation and cash accruals.

Though the CCD approval was for a 30-per cent ADR/GDR offering, the official said that this would be followed by a strategic sale of up to 26 per cent of the Government's equity in Nalco, which would be indicated in the ADR/GDR documents.

Send this article to Friends by E-Mail

Stories in this Section
Intl. long-distance services -- DoT raises objections to VSNL-Bharti pact

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line