AV Birla group acquires four percent stake in Nalco
The AV Birla group has acquired a four percent stake in Nalco, from the open market through its investment companies which is up for disinvestment. The paid up capital of Nalco is Rs 6440 million. The group has acquired 20 million shares at an average price of around Rs 65. The government owns 87 percent of Nalco’s equity of which 4 percent is held by the public and rest by foreign and domestic financial investors. This transaction would help the AV Birla group to have Hindalco, its aluminium company to acquire 30 percent stake in Nalco. By acquiring Nalco, Hindalco hopes to transform itself to a global producer of aluminium up from 2.4 lakh tonnes to 7.5 lakh tonnes. The acquisition of Nalco would also make Hindalco one of the largest exporters.
