Aluminium major Nalco's share price today moved higher to close at Rs 111.80, up 0.31 per cent after hitting an intraday high of Rs 114.60 on the BSE. The stock rose on reports that BHP Billiton was bidding for the Central government's stake.
On the BSE about 1 lakh shares changed hands, while the volume on the NSE was 3 lakh shares. The stock of the state-run aluminium firm has been characterised by buoyancy ever since its disinvestment plans were announced.
From Rs 49.50 on January 11, 2002, the share price surged 155.6 per cent to close at an all-time high of Rs 126.55 on July 23, 2002.
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As per reports Australian minerals and metals major BHP Bilton has joined the race to acquire stake in Nalco.
Other leading global majors such as Pechiney, of France, and the world's largest aluminium maker, Alcoa, besides domestic aluminium major Hindalco Industries are also reported to be in the race for the Nalco stake.
Recently, Hindalco acquired a stake in Nalco through open-market purchases. The Union Cabinet has already cleared the disinvestment in the state-run company in three stages. The Centre proposes to offload close to 60 per cent stake in the aluminium major by way of a three-stage process involving an American Depository Receipt (ADR), domestic offering and strategic sale.
As much as 20 per cent would be offered through ADRs, while another 10 per cent would be offloaded in the domestic market, to be followed by a strategic sale of 29.15 per cent. The Centre's stake in Nalco would stand reduced to 26 per cent, after the completion of the divestment process. It currently holds 87.15 per cent stake in the company.
Nalco is the lowest-cost producer of aluminium in the world. It is Asia's biggest alumina producer and owns a bauxite mine, an aluminium refinery, an aluminium smelter, its own captive power plants and a port facility. Nalco is the largest alumina maker in the country, and the second largest aluminium producer.
Nalco reported an 11 per cent increase in sales to Rs 600.16 crore in the quarter ended June 30, 2002, over the corresponding previous quarter. Its aluminium production has marginally increased by 0.31 per cent to 57,129 tonnes in the quarter ended June 30, 2002, over the corresponding previous quarter.
However, due to a fall in aluminium prices on the London Metal Exchange (LME), its profitability was affected in the first quarter. The net profit fell 36 per cent in the first-quarter to Rs 99.13 crore.
The company expanded its bauxite mines and alumina refinery from 24 lakh tonnes and 8 lakh tonnes to 48 lakh tonnes and 15.75 lakh tonnes, respectively in April 2002.