State-run aluminium maker Nalco today said the government proposes to only offload its equity in the company as part of the disinvestment programme.
"We do not need any money for Nalco's own funding. So if the disinvestment comes, it will be only out of the government holding only. There will be no raising of the fresh funds by the company," Nalco Chairman B L Bagra said here.
As on March-end, government holds 87.15% stake in Nalco and the rest is with the public, including 9.13% with the financial institutions.
The government has identified almost a dozen PSUs, including Nalco, to meet its Rs 30,000 crore disinvestment target, both through IPO and FPO.
"Disinvestment is the decision of the owners -- government. As far as Nalco is concerned, going by its availability of cash, above Rs 4,000 crore at present, is sufficient for next three to four years," Bagra said, adding that the company is also debt-free.
Disinvestment Secretary Halim Khan had earlier said while a minimum of 10% stake would be divested in companies that would go for initial public offering, in case of FPO candidates, 5-10% stake would be divested.
Nalco had been listed in the country's bourses long past, but it is yet to complete the 10% free float norm as required by the market regulator Sebi.
The company plans to invest Rs 2,343 crore in 2012-13, a 76% rise in capital expenditure over Rs 1,333 crore spent in 2011-12, to increase capacity.
By 2020, it proposes to invest Rs 57,903 crore mainly for setting up two aluminium smelters, a Parliamentary Standing Committee on Coal and Steel report had stated earlier.
