Nalco receives poor response for OFS

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Nalco receives poor response for OFS
The offer for sale (OFS) of National Aluminium Company (NALCO) has received poor response from investors.

The offer was fully subscribed, but the government could not sell the additional 5%, despite having fixed the floor price of Nalco to a discount to its closing price on Thursday. However, by Friday the OFS price and the market price were almost identical with NALCO plunging to a 52-week low.

The government has set a floor or the minimum offer price for Nalco's share at Rs 40 apiece, which was a 10 per cent discount to Thursday's close of Rs 44.65. "The floor or the minimum offer price for Nalco's share sale has been set at Rs 40 apiece, which was a 10 per cent discount to yesterday's close of Rs 44.65," NALCO said in a release.

NALCO is a government owned company in which the government owns slightly over 27 per cent stake. The Company reported a net profit of Rs 119 crores for the third quarter of 2012-13, as against Rs 51.22 crore for the corresponding period of FY12. Total income of the company increased by 16.67 percent to Rs 1,692.82 crore for the quarter ended December 31 as compared to Rs 1,450.85 core in the corresponding period of previous fiscal.

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