Nalco: FPO pricing will be crucial, Latest Stock Price
Nalco is a debt-free company with a dominant position and strong cost advantage in the domestic industry and has drawn up big, long-term growth plans. However, Nalco’s planned follow-on public offering (FPO) this year may not elicit huge response (unless the pricing is attractive) given the muted volume growth and metal pricing outlook (for aluminium). Among the few positives is that alumina volumes are estimated to increase while lower costs should help prop up margins, both of which are factored in the current share price.
The government’s holding in Nalco currently stands at 87.15 per cent, and a 10 per cent dilution (to 77.15 per cent) at current market price of Rs 62 could fetch about Rs 1,600 crore.
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