Aluminium maker Nalco on Wednesday said its board has approved a proposal to buy back 64.43 crore shares worth close to ₹2,835 crore, a move that will lead to liquidation of the government’s stake in the firm.
In a regulatory filing, the company said its board approved the buyback of upto 64.43 crore equity shares of the company, representing 25 per cent of its paid-up share capital.
The buyback will take place “at a price of ₹44 an equity share payable in cash for an aggregate consideration not exceeding ₹2,834.96 crore,” the filing said.
The Navratna firm will take the approval of shareholders by way of a special resolution through Postal Ballot and all other applicable statutory approvals, it added.
“The board of directors noted the intention of the promoter (government) of the company to participate in the proposed buyback,” the filing said.
Derailed stake-sale plan
Earlier, sources had said that the government was looking to raise around ₹3,250 crore by selling 25 per cent stake to Nalco after its stake-sale plans got derailed due to volatile markets.
The Central government, which holds 80.93 per cent stake in Nalco, was planning to divest 10 per cent shareholding to raise about ₹1,300 crore.
In anticipation of the buyback announcement, shares of the firm on Wednesday rose 1.65 per cent to settle at ₹43.05 apiece on the BSE.