NALCO share price slips after DIPAM says no divestment agenda for this Navratna CPSE
2 min read . Updated: 17 Feb 2023, 04:26 PM IST
Premium- During the Budget 2023, while setting a much lower disinvestment target of ₹51,000 crore for FY24, the government also trimmed the FY23 target to ₹50,000 crore from the earlier estimates of ₹65,000 crore.
Government-owned National Aluminium Company (NALCO) share price slipped on Friday after DIPAM secretary Tuhin Kanta Pandey said the Centre has no divestment agenda for the company. In Budget 2023, the government pegged a much lower disinvestment target of ₹51,000 crore for the fiscal year FY24.
On BSE, NALCO shares closed at ₹80.15 apiece down by 0.43%. Its market cap is around ₹14,720.60 crore.
However, in the second half of the trading session, Pandey revealed that NALCO is not on the divestment agenda. This led to a at least 1.2% dive in NALCO shares with an intraday low of ₹79.50 apiece before correcting.
DIPAM's secretary said, the divestment aim follows a calibrated strategy and doesn't want to distort the market, CNBC reported. Over here, he mentioned about NALCO was not included in the divestment strategy.
In Budget 2023, while setting a much lower disinvestment target of ₹51,000 crore for FY24, the government also trimmed the FY23 target to ₹50,000 crore from the earlier estimates of ₹65,000 crore.
Also, Finance Minister Nirmala Sitharaman in her budget speech said, "to facilitate certain strategic disinvestments, it is proposed to allow carry forward of accumulated losses and unabsorbed depreciation allowance in the case of amalgamation of one or more banking company with any other banking institution or a company subsequent to a strategic disinvestment, if such amalgamation takes place within 5 years of strategic disinvestment. "
Also, the FM proposed to modify the definition of ‘strategic disinvestment’.
Earlier, the government planned strategic sales of companies such as Shipping Corporation of India, NMDC Steel, BEML, HLL Lifecare, Container Corporation of India and RINL or Vizag Steel, and the big ticket IDBI Bank.
As per the latest data of DIPAM, disinvestment to the tune of ₹31,106.64 crore has so far been completed in the current fiscal year -- which is currently 62.21% of the revised budgeted target for FY23.
So far in FY23, some of the major disinvestments are --- ₹20,516.12 crore stake sale through IPO in the largest insurer, LIC, ₹3,839 crore worth stake sale in Axis Bank via SUUTI, OFS worth ₹3,026.23 crore, and ₹2,723.73 crore in ONGC and IRCTC.
NALCO is a Navratna CPSE and is one of the largest integrated Bauxite-Alumina-Aluminium- Power Complex in the country. Further, the company has integrated and diversified operations in mining, metal, and power.
In the third quarter of FY23, NALCO garnered a net profit of Rs.274 crore, as against ₹170 crore in the preceding quarter of this fiscal. Net sales stood at ₹3,290 crore during the December 2022 quarter.