RCF, NFL share sale by December, govt to get Rs 1,200 crore

The government is likely to sell shares in two fertiliser companies — RCF and NFL — by December-end to garner over Rs 1,200 crore, an official said.

The offer for sale (OFS) would be for 10 per cent of government stake in Rashtriya Chemicals & Fertilizers Ltd (RCF) and 20 per cent in National Fertilizers Ltd (NFL).

“The transactions could fetch around Rs 1,200 crore to Rs 1,500 crore”, the official told PTI.

The merchant bankers for the transaction have already been appointed.

The official further said that considering the steps taken by the government for the fertiliser sector, the valuation of the shares could improve in the coming months.

Shares of RCF closed at Rs 72.25, while that of NFL at Rs 53.95 on the BSE on Friday.

The government currently holds 74.71 per cent stake in NFL and 75 per cent in RCF.

The government has set an ambitious target of raising Rs 1.75 lakh crore from divestment in 2021-22, higher than Rs 38,000 crore it raised last fiscal.

Most disinvestment proceeds will be raised by selling stake and management control in companies like Bharat Petroleum Corp Ltd, Air India, Shipping Corp of India and by listing Life Insurance Corp.

So far, the government has raised over Rs 8,300 crore by selling stake in Axis Bank, NMDC Ltd and HUDCO.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor