National Aluminium Company (Nalco) Buyback

Nalco Buyback
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NALCO is a Navratna CPSE under the Ministry of Mines, Government of India. NALCO is a Schedule A ‘CPSE with integrated and diverse operations in mining, metals, and energy.

The company’s core activities include Mining and Bauxite shipping, Alumina refining, Aluminum steel production, Production of various Aluminum products, Thermal and Wind Power production, and marketing of Alumina, Aluminum and composite products.

NALCO is one of the largest Bauxite-Alumina-Aluminum- Power Complex integrated into the country.

National Aluminum Company Limited (NALCO) is a Navratna CPSE under the Department of Mines. It was established on 7th January 1981 in the Public Sector, with its registered office in Bhubaneswar.

The company is a group ‘A’ CPSE, with integrated and diverse operations in mining, steel, and energy with a turnover of Rs 9,376 million for the 2017-18 financial year. Currently, the Government of India owns 56.59% stake in NALCO.

NALCO is one of the largest Bauxite-Alumina-Aluminum- Power Complex integrated into the country. The company has 68.25 lakh TPA Bauxite Mine & 21.00 lakh TPA (normative capacity) Alumina Refinery located in Damanjodi in Koraput district in Odisha, and 4.60 lakh TPA Aluminum Smelter & 1200MW Captive Power Plant located in Angul, Odisha.

NALCO has bulk shipping facilities at Vizag port for Alumina / Aluminum shipping and importing caustic soda and operates in Kolkata and Paradeep Ports. The company has registered sales offices in Delhi, Kolkata, Mumbai, Chennai and Bangalore as well as 9 stocks operating in various parts of the country to facilitate domestic marketing.

The company is the world’s largest producer of metallurgical grade alumina as reported by Wood McKenzie. For high-quality products, the revenue received by the Export Company accounted for 43% of sales revenue in 2017-18 and the Company was rated at the top 3 rd received exports to CPSE in 2016-17 as per the Public Business Inquiry report.

With its consistent recording in energy consumption, technology absorption, quality assurance, export performance and profitability, NALCO is a good example of the strength of Indian industry.

NALCO is the first public sector company in the country to enter the major international market with the registration of the London Metal Exchange (LME) since May 1989. The company has been listed on the Bombay Stock Exchange (BSE) since 1992 and the National Stock Exchange (NSE) since 1999.

In addition to the certificates of ISO 9001, ISO 14001, OHSAS 18000 & SA 8000, the Company has also adopted ISO 50001 standards for Energy Management System.

Globally, NALCO gains the distinction of being the world’s cheapest producer of Bauxite and Alumina by 2019, according to a recent report by Wood Mackenzie.

 Nalco Buyback

Buy Back Offer Deal

Buyback Type:Tender Offer
Buyback Record Date:Feb 08 2021
Buyback Opening Date:Feb 25 2021
Buyback Closing Date:Mar 10 2021
Buyback Offer Amount:₹ 749 Crores
Date of Board Meeting approving the proposal:Jan 27 2021
Date of Public Announcement:Jan 27 2021
Buyback Offer Size:6.98%
Buyback Number of Shares:13,02,79,083
Price Type:Tender Offer
FV:5
Buyback Price:₹ 57.50 Per Equity Share

Details Of Buyback

The Board of Directors of the Company has approved a recommendation that Buyback not exceeding 13,02,79,083 Equity shares at a price of Rs.57.50 per equity share (“Buyback Offer Price”) for a face value of Rs.5 each, which is payable in cash for a maximum inclusive consideration. croress Rs. 749.

Salient financial Parameters

Particulars(Cr)Mar-15Mar-16Mar-17Mar-18Mar-19Mar-20
Sales7,3836,8177,5439,50911,4998,472
Expenses5,5105,8586,4738,1598,6077,985
Operating Profit1,8739591,0701,3512,893487
OPM %25%14%14%14%25%6%
Other Income8216593771,170327273
Interest16733226
Depreciation414426480480476530
Profit before tax2,1131,1899642,0392,741224
Tax %37%34%31%34%37%39%
Net Profit1,3227876681,3421,734136
EPS in Rs5.133.053.456.949.290.73

Profit from the buyback on the bases of acceptance Ratio

Buy 3478 Shares at CMP of Rs.48 [200000/57.50=3478)

Acceptance Ratio33%50%75%100%
Amount Invested in Buyback1,66,9561,66,9561,66,9561,66,956
No. of Shares buyback1147173926083478
BuyBack Profit10896165202477633041
Profit(%)6.52%9.8%14.8%19.79%

How to Participate in buyback?

Firstly, in order to qualify for a refund an investor must have shares in the NALCO Buyback 2020 issuance in dementia or in the form of a date such as recording date [08.02.2021].
Once you have the stock shares, you can participate in the return process which opens from [25.02.2021 to 10.03.2021] by selling your shares through your trader on the NSE or BSE.
Then on [19.03.2021], you will be paid for the shares accepted and the unacceptable shares will be returned to your dem due account.

Company Contact Information

National Aluminium Company Limited
Nalco Bhawan, Plot No. P/1, Nayapalli,
Bhubaneswar-751013

Phone: +91 (0674) 2300 677
Email: company_secretary@nalcoindia.co.in
Websitehttp://www.nalcoindia.com