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Govt initiates RCF divestment plan; invites bids from merchant bankers for issue

02 Jan 2013 Evaluate

The Government has started the process of appointing merchant bankers for managing its proposed 12.5% stake sale in Rashtriya Chemicals and Fertilizers (RCF). The merchant bankers will have to put in the bids by January 15 for managing the share sale and must have prior experience in managing offer for sale (OFS).

The government holds 92.5% stake in RCF and the paid up capital of the company is Rs 551.69 crore. Last week the Cabinet had cleared 12.5% government stake sale through OFS or auction route which could fetch the exchequer around Rs 350-360 crore.

In the current fiscal the government has decided to raise Rs 30,000 crore through disinvestment. So far in 2012-13 fiscal, the government has raised over Rs 6,900 crore through minority stake sale in PSUs. The government has already identified 10 companies, including NTPC, Oil India, MMTC, SAIL, BHEL, for disinvestment. The stake sale of Oil India is likely in January, followed by NTPC in February.

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131.70 2.85 (2.21%)
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