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Nalco on Thursday said the government proposes to only offload its equity in the company as part of the disinvestment programme.
“We do not need any money for NALCO’s own funding. So if the disinvestment comes, it will be only out of the government holding only. There will be no raising of the fresh funds by the company,” said Mr B L Bagra, Chairman, Nalco.
As on March-end, government holds 87.15 per cent stake in Nalco and the rest is with the public, including 9.13 per cent with the financial institutions.
The government has identified almost a dozen PSUs, including Nalco, to meet its Rs 30,000 crore disinvestment target, both through IPO and FPO.
“Disinvestment is the decision of the owners - government. As far as NALCO is concerned, going by its availability of cash, above Rs 4,000 crore at present is sufficient for next three to four years,” said Mr Bagra.
Nalco had been listed in the country’s bourses long past, but it is yet to complete the 10 per cent free float norm as required by the market regulator Sebi.
The company plans to invest Rs 2,343 crore in 2012—13, a 76 per cent rise in capital expenditure over Rs 1,333 crore spent in 2011—12, to increase capacity.
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