Govt mulls divesting 10 pc stake in Nalco

New Delhi, March 14

The government is considering up to 10 per cent equity dilution in the state-owned aluminium producer Nalco, which may fetch about Rs 2,200 crore. "The Ministry of Mines will have to take a decision. We have said that they could consider 5-10 per cent stake sale," Disinvestment Department joint secretary Sidhartha Pradhan told PTI.

At present, the government holds about 87.15 per cent equity in the navratna company while the rest has been made public.

Last year, Mines Minister B K Handique had ruled out any further disinvestment programme in the aluminium producer.

However, with the government planning to raise about Rs 40,000 crore from disinvestment in the next financial year, the ministry may now review its decision.

But, the company may not look at raising fresh equity along with the proposed stake sale, as recently indicated by Nalco CMD A K Srivastava.

The Ministry of Mines is currently considering a follow-on public offer (FPO) of its ailing PSU Hindustan Copper Ltd, to raise an estimated about Rs 4,500 crore for each the miner and itself.

Nalco shares closed at Rs 395.70, up 0.71 per cent on the Bombay Stock Exchange.

Based on the current share price, the government could raise about Rs 2,220 crore from the proposed up to 10 per cent disinvestment. However, the final sum would depend on the rate at which the government decides to sell its stake.

The Centre is likely to go ahead with divestment in 12-15 public sector units, including SAIL, Coal India, Hindustan Copper, SJVNL and EIL among others next fiscal to raise Rs 40,000 crore, as stated in the Budget. The sell-off road map for the next fiscal will be prepared by the end of next month and may include BSNL as well, Pradhan said.

He further said disinvestment in Satluj Jal Vidyut Nigam would be carried out in April, Engineers India in May-June, SAIL in August-September and Coal India around the end of the year. — PTI