Nalco hits a new low

Nalco has hit a new 52-weekl low today at Rs.38.65 and it currently remains deeply in the red. Volumes are at around 3 lakh shares and sellers outnumber buyers on the counter presently.

The stock is down after it received a very lukewarm response to its Offer for sale on Friday. The floor price was fixed at Rs.40 and it is currently trailing below the offer price. The Govt sold 5% stake and based on the response was to offload another 5% stake. It managed to sell 5% and the issue was fully subscrobed but there were no takers for the additional 5%.

The Govt received bids for 156.9 million shares v/s offer of 257.7 million shares, including an additional 128.8 million shares under a greenshoe option. FII response to the issue, which was at a discount, was very poor.