The Central government finally invited preliminary bids for a 29.15 per cent stake in the National Aluminium Company (Nalco), India's second-largest aluminium producer. The offer indicated that the government plans to sell the minority stake of its total share of 87.15 per cent of Nalco, and transfer management control. It plans to lower its holding later to 26 per cent through stake sales of 10 per cent to domestic investors, an American Depositary Receipts offering of 20 per cent and two percent to employees. The domestic issue would be completed a couple of months before the strategic sale. While the domestic issue for offloading 10 per cent of the company's stake would be completed by between December '02 and January '03, the ADR issue would be open after the global community settles down to serious business post-Christmas vacations. That could mean a late January opening for ADR issue where 20 per cent of the company's equity would be offered to overseas investors. The Nalco ADRs would be listed on New York Stock Exchange.
NSTL
