The public sector aluminium major National Aluminium Company (Nalco) proposes to increase the aggregate ceiling for foreign institutional investment (FII) stake in the company upto 49 per cent of the paid up capital.
The company is likely to convene an extraordinary general meeting (EGM) during the last week of March to get the shareholders approval for the purpose.
The move to increase the FII investment limit follows the government announcement to disinvest 30 per cent stake of the company through American depository receipts/ global depository receipts.
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Nalco has been lined up for disinvestment along with Maruti Udyog, Indian Petro Chemical (IPCL) and Hindustan Zinc Ltd (HZL) early next fiscal.
Sources said, convening of EGM has been necessitated as the rules restrict the power of company board to allow FII stake only upto 24 per cent. Any FII investment beyond that has to be approved by the shareholders. At present, the combined FIIs holding in the company is only three per cent.
Nalco