RCF advances 3% as govt looks to sell 10% stake

RCF advances 3% as govt looks to sell 10% stake

NEW DELHI: Shares of Rashtriya Chemical and Fertilizers climbed 3 per cent in Monday’s trade as the government is planning to sell 10 per cent stake in the company and has invited bids from merchant bankers and legal firms for managing the share sale process.

Interested merchant bankers and legal advisors will have to submit their bids by January 28 and January 29, respectively, the Department of Investment and Public Asset Management (DIPAM) said in a notice.

Following the development, the stock rose 3.24 per cent to hit a high of Rs 55.74 on BSE. At the current market price, the 10 per cent stake sale would fetch just over Rs 300 crore to the exchequer.

The government holds 75 per cent stake in RCF and intends to disinvest 10 per cent of the paid up equity capital through an offer for sale (OFS).

The merchant banker would be required to advise the government on the timing and the modalities of the OFS, esure best return from the government and assist in securing approval and exemptions, wherever necessary, from regulatory agencies, PTI reported.

The government will select and appoint two merchant bankers for managing the share sale process.

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