The government on Thursday announced plans for stake sales in two fertiliser sector firms in 2016-17 – Rashtriya Chemicals and Fertilizers (RCF) and National Fertilizers Ltd (NFL) – that would fetch about ₹360 crore to the Centre.
The Department of Investment and Public Asset Management (DIPAM) has invited bids from merchant bankers for divesting stakes in RCF and NFL.
It plans to sell 5 per cent of its equity in RCF and 15 per cent in NFL.
Both transactions will take place through the offer-for-sale (OFS) or auction route.
The government will appoint two merchant bankers each for the stake sales in NFL and RCF, said the department, adding that bids should be submitted by May 18
Five per cent of the offer size will be reserved for eligible employees of the two mini-ratna PSUs who will also be offered a 5 per cent discount on the issue price.
On Thursday, RCF shares lost nearly 3 per cent at ₹47.05 on the BSE while NFL fell 2.66 per cent at ₹31.15 apiece.
Divestment target The Centre currently holds 89.71 per cent stake in NFL and the disinvestment will fetch ₹230 crore. In RCF, it holds 80 per cent and the stake sale will raise about ₹130 crore.
With a target of ₹36,000 crore from minority stake sales in PSUs this fiscal, the department has already announced disinvestment plans in two State-run firms in the last one week.
It plans to sell 10 per cent of its holding in NMDC and Oil India each that will together raise about ₹ 6,000 crore.
Meanwhile, the government on Thursday successfully completed disinvestment of 11.36 per cent stake in NHPC, raising about ₹2,700 crore.