Shares in government owned National Aluminium Company (NALCO) dropped 8 per cent, as the government began a stake sale in the company.
The shares were last trading at Rs 40.95, down 7.5 per cent over its previous close of Rs 44.25. The stock hit a 52-week low of Rs 40.55 on the Bombay Stock Exchange (BSE).
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.
Incorporated in 1981, as a public sector enterprise of the Government of India National Aluminium Company Limited (Nalco) is Asia's largest integrated aluminium complex, encompassing bauxite mining, alumina refining, aluminium smelting and casting, power generation, rail and port operations. Commissioned during 1985-87, Nalco has emerged to be a star performer in production, export of alumina and aluminium, and more significantly, in propelling a self-sustained growth.
The company has bauxite mines on the Panchpatmali hills of Koraput district in Orissa, a fully mechanized opencast mine of 4.8 million tpa capacity is in operation since November, 1985, serving feedstock to Alumina Refinery at Damanjodi located on the foothills.
Presently, the capacity is being expanded to 6.3 million tpa.