The government is likely to initiate the domestic public issue of Nalco by September this year. As part of the divestment programme, Nalco is scheduled to offload 10 percent of the government's stake in the domestic market. This is likely to be followed by an American Depositary Receipt (ADR) where another 20 percent stake will be offloaded. Sources said the ARD issue will follow the domestic offering, while the earlier plan was to proceed with both issues together. The divestment in Nalco, country's second largest aluminium company after Hindalco, will also include a subsequent strategic sale of a 29 percent government stake. "The strategic investor will have to make an open offer for 20 percent, as per Sebi norms," sources said. The entire exercise is targeted to be completed by fiscal '03.
NSTL
