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 on Saturday.
“Now the Directorate of Disinvestment will invite expression of interest from prospective buyers to divest the stake,” he said added.
State-owned PSIDC has 44.26 per cent 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 stake in PACL but the sale could not place because of not getting the “right price“.
When EOI were invited by Punjab government in 2010, almost fourteen companies 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 fund and banks with a percentage stake of 55.74 per cent.