NALCO Buyback offer 2018

(i) National Aluminium Company Limited (NALCO) is a Navratna CPSE under Ministry of Mines. It was established on 7th January 1981 in the Public Sector, with its registered office at Bhubaneswar. The Company is a group ‘A’ CPSE, having integrated and diversified operations in mining, metal, and power with a sales turnover of Rs 9,376 crore in the financial year 2017-18. Presently, Government of India holds 56.59% equity of NALCO.

(ii) 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 the 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.

(iii) The Company is the lowest-cost producer of metallurgical grade alumina in the World as per Wood McKenzie report. With sustained quality products, the Company’s export earnings accounted for about 43% of the sales turnover in the year 2017-18 and the Company was rated 3 rd highest net export earning CPSE in 2016-17 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.

(iv) NALCO is the first Public Sector Company in the country to venture into the international market in a big way with the 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 & SA 8000 certifications, the Company has also adopted ISO 50001 standards for Energy Management System.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Oct 26 2018
Buyback Opening Date: Nov 13 2018
Buyback Closing Date: Nov 28 2018
Buyback Offer Amount: ₹ 504.84 Cr
Date of Board Meeting approving the proposal: Oct 12 2018
Date of Public Announcement: Oct 12 2018
Buyback Offer Size: 3.48%
Buyback Number of Shares: 67,311,386
FV: 5
Buyback Price: ₹ 75 Per Equity Share

Details of Buyback:

The Board of Directors of the Company Approved the proposal to Buyback of not exceeding 67,311,386 Equity shares at a price of Rs.75 (Rupees Seventy Five only) per equity share (the “Buyback Offer Price”) of face value Rs.5 each, payable in cash for an aggregate consideration not exceeding Rs.504.84 crores.

Salient financial parameters:

Year Revenue(cr) PAT(cr) EPS
2016 7422.09 787.11 3.05
2017 7951.31 668.5 2.98
2018 9809.1 1342.41 6.94

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of NALCO Buyback offer 2018 in demat or physical form as on the record date [26.10.2018] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [13.11.2018 to 28.11.2018] by selling your shares through your broker on NSE or BSE. 3. Then on [05.12.2018], the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.

Profit from the buyback on the bases of acceptance Ratio:

A) Buy 2600 Shares at CMP of Rs.66 [171,600/66=2600)
Acceptance Ratio 33% 50% 75% 100%
(i) Amount Invested in Buyback 1,71,600 1,71,600 1,71,600 1,71,600
(ii) No. of Shares buyback 858 1300 1950 2600
(iii) BuyBack Profit 7722 11700 17550 23400
(iv) Profit(%) 4.5% 6.81% 10.22% 13.63%
B) Last Buyback Acceptance Ratios Details Acceptance Ratio Detail of NALCO Buyback 2016

Recommendation:

Review and Recommendation of NALCO Buyback offer 2018 by InvestorZone team is: 4/10 Fair: 1-5 Good:5-7 Excellent: 7-10

Company Contact Details:

National Aluminium Company Limited Nalco Bhawan. Nayapalli, Bhubaneswar 751013, India Phone No. 0674-2301988-999 E-mail:company_secretary@nalcoindia.co.in, Website: www.nalcoindia.com

27 Comments

    Final Analysis of NALCO Limited 2018 ( Return Analysis)

    1. Buyback Announcement date: 12.10.2018—– Share Price was 66.

    2. 2600 Shares bought at Rs. 66 means an investment of 1,71,600.

    3. Retail Acceptance Ratio was 53.75%. i.e. out of 2600 shares, 1397 shares have been buyback by the company. Profit on Accepted Shares–12,573

    4. The unaccepted Shares were given back on 05.12.2018. The share price on 05.12.2018 was close to 66 only. So if you sell remaining shares at 66, then no loss no gain.

    5. Overall we can say a profit of 12,573 on an investment of 1,71,600 in less than 2 months.

    Reply

    If suppose 1 have 100 shares if nalco and I tender 50 shares out of that…
    Suppose company acceptance ratio is 30 % then will the company apply 30 % on 100 shares or 50 shares which I tendered

    Reply

      The acceptance would be on the number of shares you tendered and not which you have in your demat.

      Reply

    I m having nalco share at rs. 70.54/- total no. Of shares is 100. So can I eligible for buy back ??

    Reply

    NALCO Entitlement of 426 Shares against 2800 Shares….
    Entitlement Ratio-15.21%…

    Reply

    Flash NEWS: NATCO Pharma Gains 5% as Board to Consider Buyback on 5.11.2018

    Reply

    COCHIN SHIPYARD BUYBACK
    No. Of Shares= 43,95,610
    Price= Rs. 455
    Total AMount =200 Cr
    A Retail investor can buy 440 Shares( 2lakh/455) to participate in the buyback.
    As per Mar 18, the number of investors having shares between 1-500 are close to ~73 Lakh.
    The No. of Shares reserved for Retail Investor in Cochin Buyback is close ~6.60 Lakh.
    As per above figure the Acceptance Ratio would be 9%

    Reply

    The Acceptance Ratio would be close to 20-25%.

    As per data available, the no. of shares up to 1000 in March 2018 were 2.8 Cr. If we just guess that no. of shares up to 2600 ( to be eligible for Retail Category) would be somewhere close to 4-5 Cr till record date, then Acceptance Ratio would be close to 20% to 25%. However, everything here is an assumption.

    The Ratio may be got higher if shares price moves closer to buyback price in coming days.

    Reply

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