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Govt fixes floor price for RCF's OFS floor price at Rs 45/ share

08 Mar 2013 Evaluate

Ministry of chemicals and fertilizers, the promoter of Rashtriya Chemicals and Fertilizers (RCF), has fixed the floor price for the proposed divestment of the company’s stake at Rs 45 per share, translating into a premium of 2.5% as compared to its Thursday’s closing price of Rs 43.90 on the National Stock Exchange (NSE). The government a day prior unveiled that it would divest 12.5% stake or 6.89 crore shares in Rashtriya Chemicals and Fertilizers (RCF) via Offer for Sale route (OFS). However, at the fixed level, the centre could mop up a minimum of Rs 310 crore.

The Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, in a meeting held on March 6, decided about the divestment. The offer, which starts on March 8, will close on the same day. Further, as per reports, 12.15% stake sale in Nalco is likely to take place next week, while 10.82% disinvestment in SAIL may take place on March 20.

The company reported 37.13% rise in its net profit at Rs 73.98 crore for the third quarter ended December 31, 2012 as compared to Rs 53.95 crore for the same quarter in the previous year. However, total income from operation of the company has decreased by 3.04% at Rs 1567.83 crore for quarter under review as compared to Rs 1617.05 crore for the quarter ended December 31, 2011.

RCF Share Price

134.35 -2.35 (-1.72%)
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