New Delhi : Aluminium maker Nalco’s Rs 2,835 crore offer to buyback 64.43 crore shares will open on August 30.
The public sector undertaking today submitted the copy of public announcement and the letter of offer for the shareholders to the stock exchanges.
SBI Capital Markets is acting as the manager for the offer, it said a regulatory filing.”The buyback offer will open on August 30 and close on September 14, 2016,” it added.The offer size represents 22.15 per cent of the aggregate of the fully paid-up share capital and free reserves of the Navratna company for the financial year ended March 31, 2015. In May, the state-run firm had announced plans to buyback shares not exceeding 64,43,09,628 (representing 25 per cent of the total number of equity shares in the paid-up share capital of the company).
The buyback is to happen “at a price of Rs 44 per equity share payable in cash for an aggregate consideration not exceeding Rs 2,834.96 crore. The government holds 80.93 per cent stake in Nalco.”The buyback will help the company return surplus cash to its members holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to members,” the firm said in the public offer document.It may help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value, it added.
