NALCO Buyback 2021 - NALCO (National Aluminium Company Limited) Buyback Price With Record Date and Other Details

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 buyback details

    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 7.83of 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 ActivityDate
    Board Meeting for NALCO Buyback proposal27.01.2021
    NALCO Buyback Approval date27.01.2021
    Public Announcement of  Buyback29.01.2021
    Buyback Record Date08.02.2021
    Buyback opens on/Buyback Opening Date2021
    Buyback closes on/Buyback Closing Date2021
    Cut-off date to receive completed tender forms by Registrar02.2021
    Cut-off date for verification by the Registrar02.2021
    Cut-off date to inform Stock Exchange on acceptance or
    non-acceptance of tendered Equity Shares by Registrar
    Last date of settlement of bids on the stock exchange02.2021
    Last date to return unaccepted shares by Registrar02.2021
    Last date of extinguishment of Equity Shares02.2021

    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?

    1. Firstly, to be eligible for the buyback the investor should have shares of NALCO (National Aluminium Company Limited) in demat or physical form as on record date (not announced)

    2. Once you have shares in demat, you can participate in the buyback process which is opening from [Not Announced], by selling your shares through your broker on NSE or BSE.

    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.