LAST UPDATED: Jan. 4, 2021, 12:32 p.m.
New Delhi (Anish Yande): The Indian government has plans to sell its stake in Rashtriya Chemical and Fertilizers Ltd (RCFL). The Centre is planning to sell a stake of up to 10% in the chemical manufacturer. Bids have been invited by the Centre from legal firms and merchant banker.
Centre plans to sell 10 percent stake:
The Department of Investment and Public Asset Management has requested the submission of bids from merchant bankers by January 28th. The bids from legal advisers are requested by January 29th.
Notice issued by the Department stated, ‘The GoI intends to disinvest 10 percent paid-up equity capital of RCFL out of its shareholding of 75.0006 percent.’
The shares are to sold through the Offer for Sale method.
Promoters of the company would be selling the shares through the stock exchanges, according to the regulations of the Securities and Exchange Board of India.
The Centre is considering providing shares to employees, considering their eligibility. These shares would be provided at a discount of the Offer for Sale size.
A law firm would be the legal adviser for the sale of the shares. The firm would submit proposals with an international law firm with experience in OFS method sales.
Details of Rashtriya Chemicals finances:
Rashtriya Chemicals & Fertilisers Ltd is a chemicals and fertilizers manufacturing company. The company is under the administration of the Ministry of Chemicals and Fertilisers. The government currently owns a 75 percent stake in the PSU.
The chemical manufacturer recorded a revenue of Rs 9,826.6 crores. The company is one of the leading producers of fertilizers in India, among companies such as NFL, GSFC, and Coromandel international.
The share capital of Rashtriya Chemicals is Rs 800 crore. The paid-up equity capital of the company is Rs 551.69 crore, as recorded in March 2020.
Rashtriya Chemicals & Fertilisers has operating units in Maharashtra. The manufacturing units in Trombay and Thal in Maharashtra manufacture fertilizers, bio-fertilizers, and water-soluble fertilizers. The company manufactures industrial chemicals at these plants as well.
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