Bhubaneswar, Feb 2 (IANS) For the first time, the state-run National Aluminium Company Limited (Nalco) has decided to go for capital restructuring by splitting a share of Rs.10 into two shares of Rs.5 each, a company official said Wednesday.
The company approved 1:1 bonus, that is one bonus share for each share held, while taking into account the third quarter results at its Jan 31 board meeting in New Delhi, director of finance B.L. Bagra said.
‘By enhancing the number of shares and reducing the price for each share, the float and liquidity of the share shall be enhanced in stock exchange,’ he told IANS.
‘This is also expected to increase the market capitalisation and enhance value to the shareholders,’ Bagra added.
Nalco’s paid-up capital of Rs.644.31 crore would stand enhanced to Rs.1288.62 crore, without any cash consideration, once the board’s resolution is endorsed by the shareholders at a meeting likely to be convened in March 2011, he said.
By amending the article of association, Nalco has created a provision for issue of ESOP (Employee Stock Option Plan), that is shares to its employees.
The ESOP is planned to be issued to the executives of the company as part payment of dues to them under performance related payment (PRP), a component of revised pay package. The detailed scheme of ESOP, including price, is yet to be finalised, Bagra clarified.
The company earlier this week had said its Q3 net profit registered 65 percent rise over the corresponding period in the previous fiscal due to lower operating cost and recovery of metal prices.
The company has registered in Q3 a net profit of Rs.256 crore (about $55 million) up 65 percent from Rs.155 crore achieved during the corresponding quarter of the previous fiscal.
According to the reviewed financial results for Q3 of the financial year 2010-11, the sales also jumped by 5 percent to Rs.1,523 crore, from Rs.1454 crore registered during the comparative period of the previous fiscal.
The operating cost during the quarter under review was lower by Rs.67 crore (6 percent) as compared to the Q3 of the previous year, the company had said.
The signs of recovery as regards alumina and aluminium prices have also impacted Nalco’s performance, the company had said.
