Why NALCO buyback offer is a good opportunity to exit - The

Why NALCO buyback offer is a good opportunity to exit - The Hindu BusinessLine


Why NALCO buyback offer is a good opportunity to exit
Satya Sontanam
BL Research Bureau |
Updated on
February 06, 2021
Given the longer gestation period for capex, current valuation justifies tendering the shares
National Aluminium Company (Nalco) announced a ₹749-crore buyback offer on January 27. The company aims to buy back 6.98 per cent of the total shares at ₹57.5 per share (now at ₹50.2) through a tender offer. Nalco’s board fixed February 8, 2021 as the record date for the purpose of determining the entitlement and the names of shareholders who are eligible to participate in the buyback.
Nalco, which significantly derives its income from sale of aluminium and alumina (raw material for aluminium), last came out with buyback offer in October 2018 at ₹75 per share. The stock price never crossed that buyback price since then.

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