An Inter-Ministerial Group (IMG) has approved the government’s stake sale of 7.64% in National Fertilizers (NFL) by way of offer for sale. The stake sale is expected to fetch over Rs 175 crore to the exchequer. The disinvestment department will soon seek Cabinet nod for the stake sale. The government currently holds 97.64% stake in NFL.
The stake sale in NFL is part of Department of Disinvestment’s (DoD) effort to meet the minimum 10% public shareholding norm as stipulated by market regulator SEBI for PSUs. The DoD would soon float Request For Proposal (RFP) for appointing merchant bankers for the issue.
The IMG is headed by Disinvestment Secretary Ravi Mathur and has members drawn from Ministry of Fertilizer, Departments of Legal Affairs, Corporate Affairs and senior officials from NFL. The DoD had earlier this month floated Cabinet note for inter-ministerial consultation on NFL stake sale.