National Aluminium Company (Nalco) Buyback 2021
(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: | Feb 08 2021 |
| Buyback Opening Date: | Feb 25 2021 |
| Buyback Closing Date: | Mar 10 2021 |
| Buyback Offer Amount: | ₹ 749 Crores |
| Date of Board Meeting approving the proposal: | Jan 27 2021 |
| Date of Public Announcement: | Jan 27 2021 |
| Buyback Offer Size: | 6.98% |
| Buyback Number of Shares: | 13,02,79,083 |
| Price Type: | Tender Offer |
| FV: | 5 |
| Buyback Price: | ₹ 57.50 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars(Cr) | Mar-15 | Mar-16 | Mar-17 | Mar-18 | Mar-19 | Mar-20 |
| Sales | 7,383 | 6,817 | 7,543 | 9,509 | 11,499 | 8,472 |
| Expenses | 5,510 | 5,858 | 6,473 | 8,159 | 8,607 | 7,985 |
| Operating Profit | 1,873 | 959 | 1,070 | 1,351 | 2,893 | 487 |
| OPM % | 25% | 14% | 14% | 14% | 25% | 6% |
| Other Income | 821 | 659 | 377 | 1,170 | 327 | 273 |
| Interest | 167 | 3 | 3 | 2 | 2 | 6 |
| Depreciation | 414 | 426 | 480 | 480 | 476 | 530 |
| Profit before tax | 2,113 | 1,189 | 964 | 2,039 | 2,741 | 224 |
| Tax % | 37% | 34% | 31% | 34% | 37% | 39% |
| Net Profit | 1,322 | 787 | 668 | 1,342 | 1,734 | 136 |
| EPS in Rs | 5.13 | 3.05 | 3.45 | 6.94 | 9.29 | 0.73 |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 1,66,956 | 1,66,956 | 1,66,956 | 1,66,956 |
| No. of Shares buyback | 1147 | 1739 | 2608 | 3478 |
| BuyBack Profit | 10896 | 16520 | 24776 | 33041 |
| Profit(%) | 6.52% | 9.8% | 14.8% | 19.79% |
Recommendation:
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open offer
Nava Bharat is on open tender basis and the price is Rs.100
ANy idea about NavBharat Ventures
Crossed 60 today at the time of falling market of about 2000 point.I think we should wait more till 8th march?
Sold aall@ 59.00
100% Entitlement, Sell in open market at 57.60 🙂
NALCO Entitlement 176 out of 1500 shares comes to 11.73%
https://kosmic.kfintech.com/karisma/buybackoffer.aspx
Nalco buyback entitlement share link
Do Not Sell Stocks In The Buyback! (NALCO)
The stock has already moved up in the last couple of months on the back of strong growth expectations from the Manufacturing sector. The quarterly results have been pretty good even during the lockdown phase. These companies reported sharp improvement in margins leading to high profit growth so the stock price has reacted positively. From a wise point of view though, the stock is expected to do well, so it is better to HOLD and NOT tender in buyback. Avoid this buyback for a lucrative opportunity due to privatisation in future.
Alankit Bose ji, a good analytical study. CMP today crossed BBP. Keep up your good job. Thank you very much for your views.
Some Important Links
1. IPO Subscription – https://t.co/uNNyIWZ1Qy
2. Official Updates on IPOs & Buybacks https://t.co/4IQ2Ne5mZ5
3. Live buyback / Delisting subscription
BSE – https://t.co/dmHcW05rPv
NSE – https://t.co/J8OBjpsiXp
1/2
Buyback Open from 25 Feb to Mar 10 2021. Settlement of bids on 17th March 2021.
Reserved ER -11.7%
General ER – 6.5%
EIL Accepted 447 against 700 shares comes to 64%
Where can I check my acceptance ratio
In demat sale quantity
Check with your broker where you have participated in offer
BUY DIVISLAB SL 3690 TGT 4200-4400 BY 20TH FEB..
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BUY TATA MOTOR SL 311 TGT 365-385 BY 16TH FEB.
BUY CAMS TGT 2600-2800 BY 2-3 MONTH.
BUY GOOD YEAR TGT 1438 BY 1-2 MONTH
BUY NATIONAL ALUMINIUM (NALCO) TGT 62-67 BUY NXT WEEK.
BUY RVNL TGT 42-45 BY NEXT WEEK.
BUY MMTC TGT 32-35 BUY MONDAY.
BUY GTLINFRA AT 1.10 TGT 8-9 BY 1-2 MONTH.
BUY SOVI CONVEYOR TGT 58-62 BUY NEXT WEEK
Please do not post news other than Buyback in this column
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EIL Acceptance Ratio 64%
Yes it will be considered, you have to de pledge and offer for acceptance.
Thanks
I have pledged the 3000 nalco on 3rd of feb.is these shares will be considered for buyback entitlement on 8th feb?
What does ER stands for??
ER Entitlement Ratio which is calculated based on all Shareholder as on Record Date
AR Acceptance Ratio which is calculated based on the basis of actual applicant of Buyback offer
Any idea what can be expected AR for Engineers India as the buyback closed today ?
Wait for a few days you’ll get to know…since price fell the AR will reduce as many would have tendered over past 2 days
Over all over subscribed by 1.7 times…. Seems AR will be around 70%
I am failing to understand how the AR will be 70%….as a matter of fact the individual investor quota was only 15% and total shares subscribed by individual investor was 2.5 crores from a total available shares of 1.05 crores
I feel the AR for individual investor would be around 40-50%
EIL acceptance ratio 64%
Thanks for the information Mr Kedia
Is this confirmed news on the EIL ACCEPTANCE RATIO.
Also when will money be credited to our account and also shares returned foe which was not accepted.
Anyone has idea about probable EIL buyback?
EIL Buyback closes today, 5 Feb 2021
I mean the probable acceptance ratio?
I feel the AR of ENGINEERS INDIA will be around 40 ~ 50 % after seeing the subscription figures in retail value less than 2,00,000.
This is the last day to buy Nalco for buyback purpose.
Is it today or tomorrow? Tomorrow is 4 Feb. T+2 means 4feb+ 5&8 Feb. 8 Feb is record date.
Umesh Saab can u kindly confirm on how u have come to conclusion that today is last day for applying for buyback for NALCO
My bad. tomorrow.
With Increase in market price to 51 AR would be increasing.
4-5 days further, would it touch 57.50??
Usually what we have seen for ENGINEERS INDIA & GAIL is that till the 2nd last day of record the price increases then it falls. This is what I have noticed it.
Sometimes may be the price will reach the buyback price and all will sell before the buyback date pushing the AR to john level.
Expected AR is around 25-30%.
Stock Report
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Neelamalai Agro Industries Ltd board approves buyback of 25,350 shares at Rs. 1600 per shareIS IT CORRECT NEWS AS 5.02.21 SAYS RECORD DATE
Should we invest in this
How is the company fundamentally
Any chances of it cracking after record date
VRL Logistics meeting on 6th Feb. may propose Buyback.
updated the page rao ji.
Umesh ji, what is apprx. shares held by Retail investors as of now in NALCO.
What about AR of engineers India.
How many times Buyback subscribed till now.
Any body, any idea…..
Please share sir
Kitne share buyback ke liye le sakte he
in Retail category
Should we enter
What is the likely acceptance ratio
Any chances of it cravkjnb further
Aashish I don’t think price will reduce more now only chance is market crashes then price might go down….otherwise I assume price will go higher and higher till the record date….I had bought yesterday with all my brokerage cost @ Rs 47.47 for 2100 shares
You decide when u want to buy
I wanted to know
What are the prospects after the record date
Fundamentally ,is the company good
If not then after record date
Price cracks and donot recover
Experts plz guide what should be done
Current Entitlement – 8.93%.
Looks a good opportunity. Only 10 days of time to play.
Ban on f&o
https://www.livemint.com/companies/news/nalco-announces-rs-749-cr-share-buyback-at-rs-57-5-per-share-11611737842550.html.
Kindly check the above link for details
Record date 8 feb
Buyback price 57.5
Should we buy now or wait for announcement. I think the buyback price will be at around 15-20% premium of current price. Kindly Share your views
Last year buyback
https://investorzone.in/buyback/national-aluminium-company-limited-buyback-offer-2018/
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.
Board Meeting on 27/01/2021