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Home  » Business » Shourie rules out Nalco divestment

Shourie rules out Nalco divestment

Source: PTI
July 24, 2003 19:25 IST
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The government on Thursday said divestment in Nalco was not being pursued at the current juncture although it had earlier decided in 2001 to sell equity through domestic and overseas public offer and strategic sale.

Divestment Minister Arun Shourie said in a written reply in Rajya Sabha that there was opposition to the sale of government equity when asked whether the Orissa government and central trade unions along with political parties have unanimously opposed privatisation of Nalco.

Shourie said the government had in September 2001 decided to divest equity in aluminium major through a mix of American Depository Receipts/Global Depository Receipts and domestic issues to be followed in the second stage by strategic sale after keeping aside two per cent for the employees and leaving 26 per cent for government.

The government had decided to offload as much as 29 per cent stake to a strategic partner while offering 30 per cent to retail and institutional investors through the public offer route.

The sale ran into trouble when a team of officials from A V Birla group, one of the suitors for Nalco were heckled while on a plant visit to the company's facilities.
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