Tender Offer | ₹749.10 Crores | Listed at BSE, NSE | Thu, Feb 25, 2021 - Wed, Mar 10, 2021
National Aluminium Company Ltd. Buyback is a tender offer for the repurchase of up to 13.03 crore equity shares at a buyback price of ₹57.5 per share with a face value of ₹5 per share, aggregating to ₹749.10 crores.
The record date for determining eligible shareholders is Feb 8, 2021. Shareholders holding equity shares as on the record date are eligible to participate in the buyback.
The buyback opens on Feb 25, 2021 and closes on Mar 10, 2021, with the last date for receipt of tender forms being Mar 12, 2021.
The finalisation of buyback acceptance is expected on Mar 16, 2021, followed by settlement of bids on Mar 17, 2021.
IDBI Capital Markets Services Ltd. is the Manager to the Buyback and Kfin Technologies Ltd. is the Registrar and IDBI Capital Markets & Securities Limited is the Registered Broker to the Buyback.
Investors are advised to refer to the National Aluminium Company Ltd. Letter of Offer for detailed information, including eligibility criteria, entitlement ratio, acceptance methodology, and tax implications.
Offer Opening Date
Thu, Feb 25, 2021
Offer Closing Date
Wed, Mar 10, 2021
Buyback Price
₹57.5 per share
Record Date
February 8, 2021
| 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. |
| 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 |
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.
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Dec-2020 | 45.00 | 37.40 | 42.04 |
| Nov-2020 | 40.20 | 29.95 | 34.63 |
| Oct-2020 | 33.30 | 29.15 | 30.80 |
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Dec-2020 | 45.00 | 37.35 | 42.06 |
| Nov-2020 | 40.20 | 29.95 | 34.63 |
| Oct-2020 | 33.30 | 29.10 | 30.78 |
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.
National Aluminium Company Ltd.
Nalco Bhawan, Plot No. P/1, Nayapalli,
Bhubaneswar-751013
Baneswar, West Bengal, 751013
Lead Manager(s)
Registered Broker
The NALCO Buyback opens on February 25, 2021, and closes on March 10, 2021.
The NALCO Buyback last day to buy is not available as of now.
The NALCO Buyback is a Tender Offer.
NALCO Buyback Schedule
| Buyback Opening Date | February 25, 2021 |
| Buyback Closing Date | March 10, 2021 |
| Last Date for receipt of Tender Forms | March 12, 2021 |
| Finalisation of Buyback Acceptance | March 16, 2021 |
| Last Date for settlment of bids | March 17, 2021 |
| Last Date for Extinguishment of Shares | March 19, 2021 |
The NALCO Buyback is being offered at Rs ₹57.5 per 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 issue size of NALCO Buyback is 13,02,79,083 equity shares at ₹57.5 per share aggregating up to ₹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.
