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Nalco CMD seeks clarification on disinvestment plan from govt
New Delhi, July 13: Voicing fears of opposition including security threats to visiting audit teams preparing aluminium giant Nalco for the proposed domestic and overseas issues as a part of disinvestment, the PSU`s chief has asked the Centre for some clarification on the privatisation plan for the company.
New Delhi, July 13: Voicing fears of opposition including security threats to visiting audit teams preparing aluminium giant Nalco for the proposed domestic and overseas issues as a part of disinvestment, the PSU's chief has asked the Centre for some clarification on the privatisation plan for the company.
"Nalco chief met me shortly after I took charge," new disinvestment secretary Dhirendra Singh said, adding that he wanted some clarification on whether the public offering and strategic sale of government equity in the psu was being staggered.
Pointing out that the government had already taken a decision on the issue, he said, "We would like to assess the situation there and find out what their fears are."
He admitted that Nalco chairman and managing director C Venkataramana had also talked about some security concerns in case the doubts raised by the local population and workers were not clarified.
Venkataramana's visit to disinvestment ministry assumes significance in the wake of government's near readiness to go ahead with the ADR and domestic issue in the next few months to capitalise on the buoyant investor sentiment witnessed during the Maruti IPO in the last few weeks. Nalco's disinvestment was put on hold following heckling of a team from A V Birla Group company Hindalco, one of the suitors for the government stake, while on a plant visit in Orissa to carry out due diligence last year.
Early this month, some trade unions including BJP affiliated BMS had threatened to go on strike on July 18 following efforts to resume the disinvestment process.
The company management has sent out an SOS to the government seeking help following a threat to disrupt the visit of the audit team engaged to finalise accounts of the company as per US GAAP standards prior to ADR issue.
Government would offload close to 60 per cent stake in the company through a combination of ADR, domestic issue and strategic sale. It proposes to offer 29 per cent equity to strategic partner along with management control while retail investors and institutions would be offered the remaining through the public issue. Post divestment government equity would stand diluted to 26 per cent, down from 87 per cent. Bureau Report
Pointing out that the government had already taken a decision on the issue, he said, "We would like to assess the situation there and find out what their fears are."
He admitted that Nalco chairman and managing director C Venkataramana had also talked about some security concerns in case the doubts raised by the local population and workers were not clarified.
Venkataramana's visit to disinvestment ministry assumes significance in the wake of government's near readiness to go ahead with the ADR and domestic issue in the next few months to capitalise on the buoyant investor sentiment witnessed during the Maruti IPO in the last few weeks. Nalco's disinvestment was put on hold following heckling of a team from A V Birla Group company Hindalco, one of the suitors for the government stake, while on a plant visit in Orissa to carry out due diligence last year.
Early this month, some trade unions including BJP affiliated BMS had threatened to go on strike on July 18 following efforts to resume the disinvestment process.
The company management has sent out an SOS to the government seeking help following a threat to disrupt the visit of the audit team engaged to finalise accounts of the company as per US GAAP standards prior to ADR issue.
Government would offload close to 60 per cent stake in the company through a combination of ADR, domestic issue and strategic sale. It proposes to offer 29 per cent equity to strategic partner along with management control while retail investors and institutions would be offered the remaining through the public issue. Post divestment government equity would stand diluted to 26 per cent, down from 87 per cent. Bureau Report