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Feb 25, 2021 - Mar 10, 2021

National Aluminium Company Limited Buyback (NALCO Buyback) Detail

Incorporated in 1981, NALCO is a Navratna CPSE under the Ministry of Mines, Government of India. NALCO is a Schedule A‘ CPSE having integrated and diversified operations in mining, metal, and power. The main functions of the company include Mining and transportation of Bauxite, Refining of Alumina, production of Aluminium metal, Manufacturing of various Aluminium products, generation of Thermal and Wind Power, and marketing of Alumina, Aluminium and allied products.

NALCO is one of the largest integrated Bauxite-Alumina-Aluminium- Power Complex in the Country.

Globally, NALCO has achieved the distinction of being the lowest cost producer of Bauxite and Alumina in the world for the year 2019, as per the latest report of Wood Mackenzie.

NALCO Buyback Detail

Issue PeriodFeb 25, 2021 - Mar 10, 2021
Security NameNational Aluminium Company Limited
Issue TypeTender Offer
Issue Size (Shares)13.03 Crores
Issue Size (Amount)₹749.10 Crores
Buyback Price₹58 per share
Face Value₹5 per share
Listing AtBSE, NSE

NALCO Buyback Issue Timetable

Offer Opens OnFeb 25, 2021
Offer Closes OnMar 10, 2021
Record DateFeb 8, 2021
Last Date for receipt of Tender FormsMar 12, 2021
Finalisation of Buyback AcceptanceMar 16, 2021
Last Date for settlment of bidsMar 17, 2021
Last Date for Extinguishment of SharesMar 19, 2021

Buyback Ratio

Category Entitlement Ratio of Buyback
Reserved Category for Small Shareholders 23 Equity Shares out of every 195 Equity Shares held on the Record Date.
General Category for all other Eligible Shareholders 37 Equity Shares out of every 568 Equity Shares held on the Record Date.

Company Financials

Summary of financial Information (Consolidated)
Particulars For the year/period ended (Rs in Crores)
31-Mar-20 31-Mar-19 31-Mar-18
Total Income 8,742.42 11,826.48 9,917.74
Profit After Tax 136.23 1,733.69 1,342.19
Net Worth 9,986.50 10,484.94 10,503.95

Stock price at BSE (in preceding 3 months)

Month High Price Low Price Average Price
Dec-2020 45 37.4 42.04
Nov-2020 40.2 29.95 34.63
Oct-2020 33.3 29.15 30.8

Stock price at NSE (in preceding 3 months)

Month High Price Low Price Average Price
Dec-2020 45 37.35 42.06
Nov-2020 40.2 29.95 34.63
Oct-2020 33.3 29.1 30.78

Necessity of the Issue

The Buy-back is being undertaken by the Company to:
i) Optimize the capital structure; and
ii) Improve return on equity, by reduction in the equity base.

NALCO Buyback Documents

NALCO Buyback Rating

11
3.1
Rating:Rated 3.1 stars
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NALCO Buyback Reviews

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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
Website: http://www.nalcoindia.com

NALCO Buyback Registrar

  1. KFintech Private Limited
       KFintech, Tower-B, Plot No 31 & 32,
       Financial District, Nanakramguda, Gachibowli,
       Hyderabad, Telangana India - 500 032.

    Phone: 04067162222, 04079611000
    Email: nalco.buyback2021@kfintech.com
    Website: https://karisma.kfintech.com/

NALCO Buyback Manager

Lead Manager(s)

  1. IDBI Capital Market Services Limited

Registered Broker

  1. IDBI Capital Markets & Securities Limited
    Email: charushila.parkar@idbicapital.com

Find NALCO Buyback Latest Update

NALCO Buyback FAQs

The NALCO Buyback opens on Feb 25, 2021, and closes on Mar 10, 2021.

The NALCO Buyback is a Tender Offer.

NALCO Buyback Schedule

Buyback Opening DateFeb 25, 2021
Buyback Closing DateMar 10, 2021
Last Date for receipt of Tender FormsMar 12, 2021
Finalisation of Buyback AcceptanceMar 16, 2021
Last Date for settlment of bidsMar 17, 2021
Last Date for Extinguishment of SharesMar 19, 2021

The NALCO Buyback is being offered at Rs ₹58 per share per equity share.

Category Entitlement Ratio of Buyback
Reserved Category for Small Shareholders 23 Equity Shares out of every 195 Equity Shares held on the Record Date.
General Category for all other Eligible Shareholders 37 Equity Shares out of every 568 Equity Shares held on the Record Date.

The record date for the NALCO Buyback is Feb 8, 2021.

The issue size of NALCO Buyback is of 13.03 Crores equity shares at ₹58 per share aggregating upto ₹749.10 Crores.

The Buy-back is being undertaken by the Company to:
i) Optimize the capital structure; and
ii) Improve return on equity, by reduction in the equity base.

All the eligible Shareholders of the Company holding either Physical Shares or Demat Shares as on the Record Date can participate in the buyback offer through their Stock Broker.

The eligible shareholder holding the shares in Demat form needs to inform their broker the details of the Equity shares they wish to tender in the Buyback Offer. The shareholder needs to transfer the tendered shares to a Special account of the clearing corporation. The broker, in turn, would place an order on the stock exchange for the buyback.

The eligible shareholder holding the shares in physical form needs to approach their broker with original share certificates and supporting documents. Upon completion of document verification, the broker places an order on the stock exchange and submits the original share certificate and TRS to the registrar.

The tender form and TRS are optional in the case of Demat shares but mandatory in the case of physical shares.

The NALCO Buyback offers an opportunity for the shareholders to exit their positions at a premium price. In case you stay invested you would have an increased percentage of shareholding in the company and improved earnings per share. Thus, one should understand the company fundamentals along with one's need, goals, and risk appetite to decide if one wants to stay invested or participate in the buyback offer.


5 Comments

5. SARITA S  Mar 5, 2021 18:56 I Like It. | Report Abuse Reply
Dear Admin sir,
There is no thrill in open market buyback for retailers.
So, please open pages for tender route buyback of companies like SIS, Bharat Rasayan etc which are good companies undergoing the buyback action.
4. Aniketiaf  Feb 24, 2021 07:33 I Like It. | Report Abuse Reply
A 100 percent AR likely.
4.5. Ou Ai  Feb 28, 2021 03:20 I Like It. | Report Abuse
With increase in global aluminum prices by 28% Nalco and Hindalco will go up gradually despite minor dips in between. Naclo should go to 75 ~80 levels post buyback. One can buy at dips either to tender on buy back or even hold over next 1 to 2 years
4.6. ganesh jaiswal  Mar 3, 2021 19:49 I Like It. | Report Abuse
Aniket ji,
Today booked profit half holding of NALCO @ 63.
3. SARITA S  Feb 20, 2021 19:43 I Like It. 1 | Report Abuse Reply
Nalco may be available <49 in the coming week. Good opportunity to enter for tendering in Buyback.
3.6. Ou Ai  Feb 23, 2021 11:55 I Like It. | Report Abuse
it should be bought before opening of buy back. As most clever investors tend to think alike rush to buy after dates are announced. Nalco is hitting 52 week high now at 54.20!

Might remain close to buyback price as buyback opens. Aluminum prices rising in tandem with commodity prices.... good to hold unaccepted shares for an year or two
3.7. amit K singh  Feb 25, 2021 06:23 I Like It. | Report Abuse
I think during buyback, Nalco will not go below rs 49 ...
2. Ou Ai  Feb 21, 2021 10:40 I Like It. | Report Abuse Reply
You can sell balance shares. Else, you can also tender all the shares and higher number may get accepted as a small shareholder.
1. Rajesha  Feb 21, 2021 07:23 I Like It. | Report Abuse Reply
I have 200 shares of NALCO and eligible for 23 shares in buyback. After applying for buyback, can i sell remaining 177 shares before 25th February?