
The State-run aluminium producer Nalco today submitted the copy of public announcement regarding its INR2,835 crore offer to buyback 64.43 crore shares that will open on August 30. The announcement along with the letter of offer for the shareholders was submitted to the stock exchanges where the Navaratna PSU is listed.
SBI Capital Markets has been appointed manager for the offer, Nalco said in a regulatory filing.
"The buyback offer will open on August 30 and close on September 14, 2016," the company added.
The offer size comprises 22.15 per cent of the total value of fully paid-up share capital and free reserves of Nalco for the fiscal year ended March 31, 2015. In May, the aluminium major 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). .jpg)
The buyback will take place "at a price of INR44 per equity share payable in cash for an aggregate consideration not exceeding INR2,834.96 crore. Government of India 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 company said in the regulatory filing.
The buyback will enable it to improve return on equity by reducing the equity base thereby increasing shareholders' value in the long term, Nalco added.
The Navaratna company said it has no plan to raise additional debt as of now for the explicit purposes of buyback offer and will reach out to its free reserves and bank assets other than fixed deposits for any immediate requirement of fund.
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