With two successes on the disinvestment front, the Government has now decided to offload part of its holding in Rashtriya Chemical and Fertiliser (RCF). This is 11th public sector undertaking approved for the disinvestment programme.
“The Cabinet Committee on Economic Affairs (CCEA) approved disinvestment of 12.5 per cent paid-up equity capital of RCF out of Government’s shareholding of 92.5 per cent,” Finance Minister P. Chidambaram announced on Wednesday. The effort will be to complete the process in this financial year, ending March 31, he added.
Chidambaram said although it had been decided to use the offer for sale through stock exchanges or auction method, this could be changed to follow-on public offer. Disinvestment will help the company meet the minimum public shareholding of 10 per cent, as prescribed by market regulator SEBI, and needs to be completed by August 2013.
The Government plans to offer 6.89 crore shares, each with a face value of Rs 10. The paid-up equity capital of the company is Rs 551.69 crore. Following the announcement, shares of RCF closed at Rs 57.60 on the BSE on Wednesday.
RCF is a mini-ratna under the administrative control of the Ministry of Chemicals & Fertilisers, Department of Fertilisers. It is engaged in manufacturing and marketing fertilisers and industrial chemicals such as methanol, methylamines, ammonium bicarbonate, ammonium nitrate etc. from its two operating units at Trombay and Thal in Maharashtra.
During the quarter ended September 30, the company’s revenue was Rs 1,668.57 crore, while its net profit rose to Rs 82.88 crore.