NALCO (National Aluminium Company Limited) will buyback nearly 13,02,79,083 shares for about Rs.749,10,47,273/- (Rupees Seven Hundred Forty Nine Crore Ten Lakh Forty Seven Thousand Two Hundred Seventy Three Only). In a filing to the stock exchanges, NALCO (National Aluminium Company Limited) said it will buyback 7.83 percent of the fully paid-up equity shares at a price of Rs.57.50/- per share.
The board of directors of NALCO (National Aluminium Company Limited) approved the proposal to buyback of not exceeding 13,02,79,083 equity shares of face value of Rs 5 each of the company (representing 7.83 percent of the total number of fully paid-up equity shares in the paid-up share capital of the company) at a price of Rs 57.50 per equity for an aggregate consideration not exceeding Rs 749.10 crore," it said.
NALCO (National Aluminium Company Limited) BuyBack 2021 Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | February 08 2021 |
| Buyback Offer Amount: | ₹ 749.10 Crore |
| Date of Board Meeting approving the proposal: | Jan 27 2021 |
| Date of Public Announcement: | Jan 29 2020 |
| Buyback Offer Size: | 7.83% |
| Buyback Number of shares: | 13,02,79,083 |
| Price Type: | Tender Offer |
| FV: | Rs. 5 |
| Buyback Price: | ₹ 57.50 Per Equity Share |
NALCO (National Aluminium Company Limited) buyback of 13,02,79,083 equity shares which is around 7.83% of all the existing number of equity shares at a price of ₹57.50 per equity share. The buyback offer not exceeding of ₹ 749.10 crore of total buyback offer size.
Note: If anything you want to know about the buyback offer you can refer the NALCO (National Aluminium Company Limited) buyback offer documents. Click Here
NALCO (National Aluminium Company Limited) Buyback Important Dates
| Buyback Activity | Date |
|---|---|
| Board Meeting for NALCO Buyback proposal | 27.01.2021 |
| NALCO Buyback Approval date | 27.01.2021 |
| Public Announcement of Buyback | 29.01.2021 |
| Buyback Record Date | 08.02.2021 |
| Buyback opens on/Buyback Opening Date | 2021 |
| Buyback closes on/Buyback Closing Date | 2021 |
| Cut-off date to receive completed tender forms by Registrar | 02.2021 |
| Cut-off date for verification by the Registrar | 02.2021 |
| Cut-off date to inform Stock Exchange on acceptance or non-acceptance of tendered Equity Shares by Registrar | 02.2021 |
| Last date of settlement of bids on the stock exchange | 02.2021 |
| Last date to return unaccepted shares by Registrar | 02.2021 |
| Last date of extinguishment of Equity Shares | 02.2021 |
Necessity of Buyback by NALCO (National Aluminium Company Limited)
Buy-back is the acquisition by a company of its own shares. Buy-back is an efficient form of returning surplus cash to the members holding equity shares of the Company, inter-alia, for the following reasons:
i. The Buy-back will help the Company to return surplus cash to its members holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to members;
ii. The Buy-back, which is being implemented through the Tender Offer route as prescribed under the Buy-back Regulations, would involve allocation of higher of number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the small shareholders. The Company believes that this reservation of 15% for small shareholders would benefit a large number of public shareholders, who would get classified as "small shareholder;
iii. The Buy-back would help in improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders' value; and
iv. The Buy-back gives an option to the members holding equity shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buy-back offer or they may choose to not participate and enjoy a resultant increase in their percentage shareholding, post the Buy-back offer, without additional investment.
About NALCO (National Aluminium Company Limited)
National Aluminium Company Limited (NALCO) is a Navratna CPSE under Ministry of Mines. It was established on 7th January, 1981, with its registered office at Bhubaneswar. The Company is a group ‘A’ CPSE, having integrated and diversified operations in mining, metal and power. The Company registered net-profit of Rs. 138 crore and sales turnover of Rs. 8,426 crore in financial year 2019-20. The export earnings have been recorded at Rs. 3,511 crore. Presently, Government of India holds 51.5% equity of NALCO.
NALCO is one of the largest integrated Bauxite-Alumina-Aluminium- Power Complex in the Country. The Company has a 68.25 lakh TPA Bauxite Mine & 21.00 lakh TPA (normative capacity) Alumina Refinery located at Damanjodi in Koraput district of Odisha, and 4.60 lakh TPA Aluminium Smelter & 1200MW Captive Power Plant located at Angul, Odisha. NALCO has bulk shipment facilities at Vizag port for export of Alumina/Aluminium and import of caustic soda and also utilizes the facilities at Kolkata and Paradeep Ports. The Company has registered sales offices in Delhi, Kolkata, Mumbai, Chennai and Bangalore and 9 operating stockyards at various locations in the Country to facilitate domestic marketing.
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. With sustained quality products, the Company’s export earnings accounted for about 42% of the sales turnover in the year 2018-19 and the Company was rated 2nd highest net export earning CPSE in 2018-19 as per Public Enterprise Survey report.
With its consistent track record in capacity utilization, technology absorption, quality assurance, export performance and posting profits, NALCO is a bright example of India’s industrial capability.
NALCO is the first Public Sector Company in the country to venture into international market in a big way with London Metal Exchange (LME) registration since May, 1989. The Company is listed at Bombay Stock Exchange (BSE) since 1992 and National Stock Exchange (NSE) since 1999. Besides, ISO 9001, ISO 14001, OHSAS 18000, ISO 50001 & SA 8000 certifications, NALCO’s Data Centre at Corporate Office and Disaster Recovery Site at Alumina Refinery certified for Information Security Management System and awarded ISO 27001:2013 Certification and Accreditation from International Accreditation Services, USA.”
How to Participate in buyback?
3. Then on [Not Announced] the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.
NALCO (National Aluminium Company Limited) Buyback 2021 FAQs:
When is NALCO (National Aluminium Company Limited) Buyback Record Date?
NALCO buyback 2021 record date is 08 February 2021
When is NALCO (National Aluminium Company Limited) Buyback announcement Date?
NALCO buyback 2021 announcement date is 29 January 2021.
What is NALCO (National Aluminium Company Limited) Buyback Price?
The company has fixed the price at ₹ 57.50
How to apply for NALCO (National Aluminium Company Limited) Buyback 2020?
As per the record date you need to have NALCO (National Aluminium Company Limited) shares in your demat account. You can participate in buyback after having the stock in your account.
 Buyback Price With Record Date and Other Details){kind=link}