Nalco seeks phased stake sale for a professional board
Government to offload 30% stake overseas in phase I
The government`s move to phased divestment of its stake in Nalco, indicates an attempt to induce professionally run management in the company, on the lines of Larsen and Toubro. An initial 30% would be sold through an overseas float and subsequently another 30% in the second stage, could enable a professional board to run the company. Nalco is the country`s second largest aluminium company with 230,000 tonne capacity and a 26% market share. The government currently has an 87% stake, which will drop to 26%. Officials believe that an overseas float will help obtain international valuation and also serve as a benchmark for subsequent divestment in the domestic market.
