Punjab Alkalies hit the 20% lower deck as the company's divestment has not been backed up by any bidder.

In fact, even though the government called for expressions of interest for its 44.26% stake in the company, no bids were forthcoming from any corporate entity. The due date for expressing interest elapsed on 24 April 2003.

By 10:51 IST, the scrip of Punjab Alkalies & Chemicals plunged by its maximum permissible limit to Rs 5.90. Volumes of 57,701 PACL shares were recorded on BSE thus far. PACL has now lost 35.5% from Rs 9.15 on 24 April 2003. Earlier, from a low of Rs 2.85 on 21 May 2002, the scrip had surged 517% to a high of Rs 17.60 on 19 June 2002. The scrip moved in a band of Rs 8-17 over the next few months.

The Punjab government holds a 44.26% stake in PACL through Punjab State Industrial Development Corporation. The government had put its entire holding in PACL on the block

The lack of interest comes as another damper to the Punjab government's divestment agenda. Recently, the divestment of another state-run company, Punjab Communications, had failed. In fact, the government garnered just one bid for PCL - from Shyam Telecom. That bid was rejected as the price quoted was far below the reserve price.

PACL manufactures caustic soda, liquid chlorine and hydrochloric acid. PACL has been making losses over the last few years in a row. With losses accumulating, the company's book value per share has been eroded to below par. The book value per share stood at Rs 7.50 as on 31 March 2002.

For Q3 ended 31 December 2002, PACL reported a net loss of Rs 7.04 crore compared to a loss of Rs 7.18 crore in Q3 ended 31 December 2001. Sales rose 15% in Q3 to Rs 36.99 crore from Rs 32.10 crore.